Online motor insurance firm gears up for expansion following acquisition

Hebden Bridge-based guaranteed asset protection (GAP) insurance specialist Direct Gap is set for rapid expansion following its acquisition by technology and insurance focused investment company Axia Partners.

Established more than 11 years ago, Direct Gap was launched to provide an online gap insurance product providing customers with up to 75% savings on motor dealer gap insurance. Axia Partners has acquired a 100% shareholding in the business for an undisclosed sum.

Direct Gap has been growing at 38% compound annual growth rate for the past four years. The company has policy renewals in the thousands annually and commercial partnerships with blue-chip brands such as Confused.com

The acquisition expands Direct Gap’s national network across insurance and technology-focused solutions. This will begin with the launch of a southern office in Brighton to allow the company to better serve its national client base.

Direct Gap’s founder and managing director, James Cartwright, is remaining with the company to lead its growth strategy.

Axia Partners director, Michael Jennings, said: “Axia Partners was founded with a focus on assisting leading technology enabled companies to scale organically through our partners network and experience in industries such as investment banking, insurance and technology consultancy.

“We are very enthusiastic about what the future holds for Direct Gap and are looking forward to working closely with James.”

Direct Gap’s James Cartwright added: “We share the same vision for the business and with Axia Partners backing, we will be able to accelerate our plans. As a combined team, we are now hugely excited by the opportunities that the future holds for Direct Gap and look forward capitalising upon them.”

A team from Yorkshire law firm Gordons comprising corporate partner, Duncan Firman, and corporate solicitors, Lucy Leyland and Lisa Murphy, advised Direct Gap on the sale.

Gavin Lamb, director of Bradford-based chartered accountancy firm Naylor Wintersgill, provided Direct Gap with financial advice. Manchester-based Blackstone Solicitors advised Axia Partners, led by partner, Jabbar Khawar.

Cartwright added: “Both parties wanted to move quickly to secure the deal and this was helped significantly by the capabilities of our teams at Gordons and Naylor Wintersgill. Their expertise, diligence and commercial acumen made it happen at pace.”