Davies has agreed to acquire SCM Insurance Services, Canada’s leading claims processing and risk solutions provider, in its largest strategic acquisition to date.

The deal will see SCM’s core businesses, ClaimsPro, IPG, and Pario, integrated into Davies’ global platform, expanding the firm’s operations to 22 countries and increasing its annual revenues to approximately $1.4bn. More than 1,500 SCM professionals across Canada and the US will join Davies as part of the transaction.

The acquisition strengthens Davies’ presence across North America, adding nationwide coverage in Canada and enhancing its risk management, third-party administration, and end-to-end claims capabilities.

“The business is very highly regarded in Canada, and as market leader, this puts us in the #1 spot in this growing and vibrant market,” said Dan Saulter, Group Chief Executive Officer of Davies. “The deal will allow us to unlock significant growth opportunities, on both sides of the ledger; with SCM clients benefiting from our global reach and wider service offering; and with Davies clients being able to access the best claims and risk solutions teams in Canada.”

SCM Chief Executive Officer Bob Fitzgerald said the transaction represents a major step forward for both firms. “Our clients will now have access to Davies’ global solutions, immediately elevating our technology, AI, and platform offering,” he said.

As part of the deal, SCM’s current shareholders, Warburg Pincus and TorQuest Partners, will reinvest part of their proceeds to become minority shareholders in Davies, joining existing institutional investors BC Partners, AIMCo, and HGGC.

The acquisition marks another milestone in Davies’ rapid expansion under BC Partners’ ownership, which began in 2021 and has since seen the firm triple its annual revenues.

Earlier this year, Davies announced plans to significantly increase its investment in AI and digital transformation as part of its “Vision 2030” strategy, which aims to grow annual revenues beyond $3.5bn through organic expansion and strategic M&A.

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