UK-based Cinven Partners has entered into an agreement with US-based private equity firm GTCR to acquire Premium Credit (PCL), for around £462m.
Premium Credit is one of the leading insurance premium finance firms in the UK and Ireland, which works with a diverse network of insurance brokers and carriers to enable businesses and individuals to pay insurance premiums in installments rather than a single annual payment.
As part of executing its leaders strategy, GTCR collaborated with new CEO Andrew Doman to acquire PCL in October 2012 from MBNA Europe, a subsidiary of Bank of America (BAC).
GTCR managing director Collin Roche said: "The execution of this corporate carve-out and the subsequent growth and improvement of the business is another example of how GTCR executes the Leaders Strategy.
"Together with PCL CEO Andrew Doman and an excellent management team, we realized the untapped potential of PCL’s leading market position while enhancing capabilities and creating a stronger value proposition for the company’s partners and customers."
Founded in 1988, Premium Credit is involved in processing and funding 25 million transactions annually, associated with more than £3.5bn in payment volume for two million customers, across its business lines.
In addition, the firm provides payment facilitation and financing services for professional fees, school fees, membership subscriptions and other commercial services.
Premium Credit chief executive Andrew Doman said: "Premium Credit has delivered strong performance since the carve-out from Bank of America. We have consistently achieved high levels of customer service and built on our good reputation for product expertise amongst intermediaries."
Image: Cinven to acquire insurance premium finance company Premium Credit. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.