Corporate News

LDC exits Validus-IVC to US data analytics provider Verisk

LDC, the UK’s leading mid-market private equity investor, has exited its investment in Validus-IVC (Validus), a claims management and counter-fraud software specialist, in a sale to NASDAQ-listed leading data analytics provider Verisk.

Validus was established in 2007 to provide claims management and analysis services to the UK motor industry and has since evolved to develop its own proprietary software that supports the automation of some claims services for insurance providers in the UK and overseas, including Australia.

LDC invested in Validus in 2013 to back the buyout of the business. The business, headquartered in Norwich, works with many of the UK’s leading insurers, notably providing its award-winning verifytm software, which now services well over half of the UK insurers by number of claims, and generates more than half of the Group’s earnings.

Ed Van Rooyen, CEO at Validus, said: “The team at LDC has provided the financial and managerial support that is essential to any business with ambitious growth plans. We’ve come a long way in recent years and have built a thriving and exciting business at the forefront of claims management. We look forward to embarking on our journey with Verisk and continue to challenge and disrupt the global motor insurance market.”

Rob Schofield, Investment Director at LDC, added: “Sometimes growth strategies can take longer than originally planned, but we pride ourselves in sticking with our portfolio companies to help them through challenges and stay true to their business strategy. Our longstanding relationship with Validus and this transaction with a major, international player in the data analytics industry shows the value there is in that long-term commitment.

“The deal provides Validus with a great opportunity to deliver its products into new markets around the world and, in turn, offers Verisk a real foothold in the UK insurance market, but also access to a key software platform and delivers its broader product and service proposition – that has significant growth potential. We wish Ed and his team all the best with this new venture.”

Article Footnotes

Notes to Editors

  1. LDC is part of the Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority
  2. LDC back ambitious management teams from UK-based companies seeking between £2m and £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
  4. LDC has a UK regional network of 9 offices.