Case studies

Successful acquisition of SSP by LDC

Deloitte provided a comprehensive suite of bid support services to LDC

A national cross-service line team, spanning Corporate Finance Advisory in Yorkshire & the North East, the TMT and Financial Services teams, and specialist debt and tax practitioners advised LDC on its majority investment in SSP Holdings.

About SSP

SSP is a market leader in providing mission critical IT systems and services to the general insurance industry. The firm’s end-to-end services are delivered in 50 countries to over 50,000 users and help organisations to use data to better analyse risks, improve efficiencies across platforms, reduce costs and improve the customer experience.

The business serves over 1,000 insurance brokers, as well as over 160 insurers, including 20 of the world’s largest underwriters. SSP’s broking technology processes transactions worth over £5bn in gross written premium and over 1.1bn internet insurance quotes annually.

The company, which employs over 700 staff, is headquartered in Halifax, West Yorkshire and has offices in Solihull and Aldershot, as well as operations in Australia, the Far East, South Africa, India, Ireland and New Zealand. For the year ended 31 March 2014 SSP recorded EBITDA of £20m.

Why Deloitte

Deloitte played a key role in the formation of SSP through structuring and advising on a £22m MBI in 2002. Since then Deloitte has been a trusted advisor to the business providing a range of services to support the business as it has grown, both organically and by acquisition, and has now advised SSP on nine successive transactions culminating in the latest MBO.

Services provided

Practice Senior Partner Martin Jenkins and Corporate Finance Advisory Director Paul Roberts led a Leeds based Deloitte team that provided corporate finance advice, debt advice, tax structuring advice, tax advice and due diligence services to LDC. Joel Greenwood and Simon Barrass, partners in Deloitte’s Technology and Insurance advisory teams respectively, provided specialist input including market insight. A separate team from the Newcastle office led by David Frith and Stephen Hall provided financial and tax advice to SSP’s management team.

Outcome

LDC successfully acquired a majority stake in SSP, alongside an investment by Scottish Equity Partners (SEP).

Laurence Walker, Executive Chairman of SSP, said: “We are delighted to have completed this transaction with LDC and SEP. Once again Deloitte have played a key role in shaping and delivering a transaction which represents an important milestone in SSP’s development.”

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