Davies to acquire Canada’s SCM Insurance Services

Davies, a specialist professional services and technology firm serving the insurance market, has signed an agreement to acquire SCM Insurance Services (SCM), Canada’s largest claims processing and risk solutions provider.

As part of this acquisition, SCM’s three operational entities will be integrated into the Davies global platform, these include ClaimsPro, Canada’s leading claims adjusting firm; IPG, its third-party claims administrator; and Pario, its forensic engineering and consulting business and post-loss appraisal.

Following the deal, Davies will have annual revenues of around $1.4bn, with a combined team of 9,500 colleagues operating in 22 countries across Europe, North America, South America, Asia, and Australasia.

This acquisition marks Davies’ most significant strategic M&A to date, the firm highlighted. It allows the fast-growing tech-enabled firm to offer comprehensive nationwide service across Canada, while simultaneously integrating SCM’s US operations into Davies’ existing presence in the US.

As part of this dead, SCM’s team of over 1,500 professionals in Canada and the US will join Davies.

Dan Saulter, Group Chief Executive Officer, Davies, said: “We are thrilled to have gotten this deal signed, bringing the SCM team into Davies. The business is very highly regarded in Canada, and as market leader, this puts us in the #1 spot in this growing and vibrant market.

“The deal will allow us to unlock significant growth opportunities, on both sides of the ledger; with SCM clients benefiting from our global reach and wider service offering; and with Davies clients being able to access the best claims and risk solutions teams in Canada. I look forward to working with CEO, Bob Fitzgerald, and the whole team.”

As part of the acquisition, SCM’s existing institutional shareholders, Warburg Pincus and TorQuest Partners, will reinvest part of their proceeds and become minority shareholders in Davies, alongside Davies’ existing institutional shareholders: BC Partners, AIMCo, and HGGC. BC Partners took a majority stake in Davies in August 2021, with the business tripling annual revenues under BC’s ownership.

Bob Fitzgerald, Chief Executive Officer, SCM Insurance Services, commented: “This is a fantastic opportunity for all the SCM Insurance Services brands. Our clients will now have access to Davies’ global solutions, immediately elevating our technology, AI and platform offering. I am very much looking forward to working with Dan at this exciting time.”