Davies Group, the third party administrator and specialist outsourcer, today announces the acquisition of the UK-based specialist regulatory services business Cynergie UK Ltd. The Cynergie deal is Davies’ first acquisition since HGGC took a majority stake in the business in January 2017, pledging to support its plans to invest in niche & specialist services, technology and technical expertise.
Based in Peterborough and Birmingham, Cynergie provides outsourced regulatory and complaints management services across highly regulated sectors, including: insurance, financial services, utilities, and to ombudsmen & regulators.
Cynergie’s senior team will all join Davies, with Mark Parnaby leading the business as Managing Director, reporting directly to Dan Saulter, CEO of Davies. Cynergie will retain its name and becomes a new specialist division in Davies.
The acquisition of Cynergie will allow Davies to provide additional specialist capability to its clients, including complaints & regulatory services, alongside its insurance claims and insurance services offerings. In turn Davies will invest to develop Cynergie’s capability and add new clients in regulated sectors.
Dan Saulter, CEO of the Davies Group said: “We are delighted to be partnering with the team at Cynergie, who have an excellent track record and strong long term partnerships with its clients. This is the first step towards delivering our strategy of broadening & deepening the capability that we offer our clients, through investing in niche & specialist services, technology and technical expertise”.
Mark Parnaby, Managing Director of Cynergie said: “We are excited to be joining forces with Davies Group as this will enhance Cynergie’s capability to further support our key clients and their ambitions. Our complementary services, combined with Davies’ commitment to investment in technology and specialist services will increase the value we can offer to clients”.
The shareholders of Cynergie said afterwards:
“Selecting a company to act on our behalf to sell a business we had built from scratch was a big step. We looked at five or six potential options and narrowed this to three. Presentations followed, our objective to select a company /team who could related to us, our business, our aspirations, and ultimately to help us derive the best possible value for our company.
“It was evident to all of us immediately that Doug and his team knew their stuff. This was demonstrated in particular by the questions asked of us early doors, many of which we had not previously considered. It was clear that they knew both our business and the markets in which we operated. A statement made by Doug early on still resonates with me; “you probably will not have heard of the company that will buy you”. We were taken aback by this as we thought our competitors would buy us! Doug was proved right very quickly.
It was clear to us from the get-go that Doug was all about building relationships – we had selected the right people – and that gave us the best chance of selling our business.
Empathy and trust were cornerstones of building our business and these traits quickly became evident between the Directors of Cynergie and Doug’s team during many round-the-table workshops and meetings. In understanding us, Doug quickly established rapport at both a business and personal level, where genuine friendships developed which enabled us all to interact successfully and cover huge amounts of work whilst also continuing to run a successful business.”