Maven Capital Partners £5.5 million Public-to-Private acquisition of LitComp plc
HMT, led by partner Andrew Thomson, advised Maven Capital Partners and Newco on completing the public to private purchase of LitComp Plc. Business Angel, Nigel Wray, provided additional equity funding.
LitComp was founded in 1998 by Messrs Jason and Russell Smart, who together with the current Group CFO, Mr Paul Lavender, will continue to manage LitComp’s business after the transaction.
LitComp commenced trading by providing medical reports to insurers and solicitors. In 2005, the business diversified into After The Event (ATE) insurance for legal expenses and today, the ATE business accounts for the majority of Litcomp’s revenue. Since its inception, the ATE business has grown impressively and has recently launched new insurance products and opened new offices in London and Gibraltar.
Commenting on the transaction, Stella Panu of Maven Capital Partners said:
“LitComp is a niche insurance business led by a highly capable team who we have known for a number of years. We are committed to helping the business achieve its long term goals to become a major player in this area. Meanwhile, this offer also removes the uncertainty around the existing financing structure. Under our proposal LitComp will be well capitalised with no external debt, whilst enjoying the support of a substantial institutional investor.”
Andrew Thomson commented:
“HMT were delighted to advise Maven and Management on this P2P. The transaction will ensure the management team can pursue growth in the ATE market with the full support and understanding of the shareholder group.”