The deal was
Bell said: “The opportunity to agree a deal with the UK’s largest and most influential intermediary made sound business sense as it benefits all of our stakeholders.
Montagu bought Open in March 2006, paying Misys £182m for what was then called Misys General Insurance. As well as changing its name, the company expanded its London presence with the purchase of MI, which provides IT solutions to insurance brokers in the City. In May 2007, Open International reported an annual turnover of £35m with an operating profit of £18.8m.
Jason Gatenby, director of Montagu, said: “We are proud of our association with Open. Under our ownership the company has launched a fully updated product suite and made a strategically important acquisition. We believe Towergate is the right long term home for the business and we wish everyone at Open the best for the future.”
Bank of Scotland was the arranger on the financing of the deal, and Towergate does not intend to stop now. The company has an acquisition fund with over £200m remaining, and Towergate’s Chairman, Peter Cullum, says he expects to make four or five significant acquisitions before the year is out.
It is Montagu’s third exit this year after Cory Environmental was sold to a consortium of ABN AMRO Global Infrastructure Fund, Finpro SGPS and Santander Private Equity, and HCT Shaping Systems acquired by Applied Materials, a US technology group. The firm has also announced two investments this year: Unifeeder, a German feeder operator, and ghd, the British hair styling brand.