Independent specialty managing general agent Nexus Group announced it has acquired Credit Risk Solutions Ltd. (CRS).
Established in 2003, CRS is an independent specialist trade credit broker operating with headquarters in Halifax and offices in Manchester and Birmingham, England. Details of the financial terms of the transaction were not released.
CRS will continue to be led by its founding shareholders Mike Clark, Hayden Tennant and Lisa Humphries, and will remain an open market broker, independent of the underwriting operations of the Nexus Group. The deal will allow CRS to accelerate its growth via the acquisition of strategic targets in the regional broking market, Nexus said in a statement.
Post-acquisition, Sue Morley will join the CRS board as a non-executive director. Morley recently retired from her role as client services director of Nexus CIFS, a UK trade credit insurer. Previously she had been branch director of the London office during her 10 years at Aon Trade Credit.
“CRS is a very professionally run business that has been on a steep growth trajectory in recent years,” said Colin Thompson, founder and executive chairman of London-based Nexus.
“We are excited to work with Mike, Hayden, Lisa and the whole CRS team to continue this success story in a market where we have a lot of expertise, and accelerate this growth via a buy and build strategy of regional trade credit brokers as well as add a UK regional footprint to our existing UK and international infrastructure,” he added.
“In Nexus EBA, the group already has a Lloyd’s broker and this acquisition strengthens its broking offering and the diversified range of market leading proprietary products on offer,” Thompson said, noting that this is the fourth acquisition Nexus has completed this year.
He went on to say that following the acquisition of CRS, the Nexus Group is now on track in 2017 to deliver earnings before interest, tax, depreciation and amortization (EBITDA) in excess of £10 million ($16.9 million), and a pro-forma EBITDA in excess of £14 million ($23.7 million).
“This is an exciting opportunity for the CRS team. Nexus has identified credit insurance as a product area with considerable potential,” commented Mike Clark, co-founder of CRS. “We share that vision and, with their support and investment, are absolutely committed to growing this market.”
Source: Nexus
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