Doncaster-based provider of outsourced services, Direct Group has completed acquisition of Simple Insurance from Leeds-based UK General for an undisclosed amount.
Direct Group chief executive Derek Coles said the company offers a range of outsourced services to the industry and the acquisition of the policy portfolio and servicing of the Simple’s business enhances its overall distribution business activities.
"This deal allows Direct Group to continue its strategy of providing insurance platforms and a range of products for its partners," Coles added.
The acquisition was funded by a £15m refinancing facility from Lloyds Bank Wholesale Banking and Markets Acquisition Finance.
Simple Insurance purchase marks the second acquisition by Direct Group in 2012, and follows purchase of laptop and mobile inspection specialist Circuit in April.
Pinsent Mason offered legal advice to Direct Group, while financial due diligence and commercial due diligence was provided by Ernst & Young and Deloitte respectively.
Simple Insurance offers specialist insurance for landlords and caravan owners with around 55 000 live policies, apart from a direct to consumer travel insurance offering.
Founded in 1990, Direct Group underwent a management buyout in 2007 backed by mid-market private equity firm LDC, and since then acquired insurance broker Millennium in 2008 to develop its capability in distribution, followed by the Evander Validation Services business in 2010.