Mid-market private equity firm LDC has backed a £12 million management buyout of Validus-IVC, specialists in claims management and counter fraud software services for the motor insurance industry.
Headquartered in Norwich and employing around 150 people, Validus works with the majority of the leading names in the UK insurance industry.
The business has a suite of software products that enable the efficient assessment and processing of motor insurance claims for its blue-chip customer base.
Validus also operates a specialised service that helps to identify high risk or fraudulent motor claims that it then manages on behalf of its clients on a fully outsourced basis.
LDC is backing Validus’ existing management team, which is led by chief executive Mike Srokowski. The deal was led by investment directors Paul Figgins and James Robinson, together with support from LDC’s regional managing director Martin Draper. Mr Figgins will join the board as a non-executive director with immediate effect.
The deal will provide the capital required to help support the continuing growth of Validus and also enables five founding shareholders to fully exit the business.
Mr Draper said: “As the insurance market becomes increasingly focused on improving efficiency to reduce claims costs, Validus has seen a rise in demand for their product suite which effectively streamlines and speeds up the claims management process and reducing the cost of fraudulent claims for their customer base.
“With an estimated 3.5 million motor claims each year in the UK, the prospects for Validus’s future growth are extremely positive and going forward, we look forward to supporting the team as they continue to build on the recent successes, whilst helping to execute the next phase of the business’ development.”