Arachas makes third acquisition with Sovereign’s backing
Sovereign Capital Partners, the UK private equity Buy & Build specialist, is pleased to announce that portfolio company Arachas Corporate Brokers (“Arachas”), a leading insurance brokerage operating in Ireland, has acquired Covercentre. This is the third acquisition Arachas has made since Sovereign backed the management buy-out of the business last year.
Covercentre is a wholesale insurance broker that offers specialist property and commercial vehicle insurance to c.300 sub-brokers in Ireland. Based in Dublin, the business has rapidly developed a strong and growing presence in the Irish broker-to-broker personal lines market since it was established in 2012. The combined group will employ over 230 staff across its offices in Dublin, Cork and Waterford.
Covercentre is a thriving business that will add to Arachas’ range of exclusive insurance products. We are delighted to be supporting CEO Connor Brennan and the team, as Arachas further strengthens its position in the Irish market.
Neil Cox, Partner, Sovereign
This is an exciting time for Arachas which has seen tremendous growth over the last 18 months. We are delighted to have acquired Covercentre which is a strong strategic fit for Arachas. We continue to seek opportunities to develop the Group both organically and through synergistic acquisitions of brokers.
Conor Brennan, CEO of Arachas
Sovereign recently announced that Kindertons, its nationwide specialist provider of outsourced accident management services for motor insurers and insurance brokers, together with claims management services, is to be acquired by ExamWorks, a portfolio company of Leonard Green & Partners. Completion is subject to change of control consent by the Financial Conduct Authority and the Solicitors Regulation Authority. The exit will deliver a gross return of 8x and a 73% IRR to investors.