Hyperion receives long-term equity investment to boost M&A war chest

Hyperion has received a “significant long-term” equity investment from Hg, a leading European investor in software and tech-enabled services businesses.

The transaction values the business at an enterprise value of around $5bn, and in conjunction with an additional debt raise and existing resources, will provide Hyperion with up to $1.5bn to accelerate its growth with both selective acquisitions and investments in data and technology. 

Hg will join Hyperion as an aligned, long-term, growth partner alongside General Atlantic, which invested in Hyperion in 2013, and CDPQ, which invested in Hyperion in 2018. 

The Hyperion management team and employees will remain the largest shareholder group in the company, with more than 1,000 individuals now owning shares.

The transaction follows the news that Hyperion’s broking arm, Howden, had reached agreement to acquire A-Plan Group from Hg in a near £700m deal, with Howden telling Insurance Times that he viewed the acquisition as a “stepping stone” to further growth.

Hyperion chief executive David Howden said: “I am thrilled to welcome Hg as a long-term partner. During our conversations on A-Plan Group it was clear that Hg and Hyperion share an understanding of what building a business to last means for employees and clients.

“This, the quality of the Hg team, their support for our core employee ownership and our culture of empowerment, and the desire of the Hg partners to contribute to our digital and data strategy, makes them an excellent partner to join General Atlantic and CDPQ as we continue our journey.”

Meanwhile, Andrew Land, Partner at Hg, said: “It is a privilege for Hg to back David and his fantastic team through this investment in Hyperion. The company is a unique and special business, driven by its outstanding culture and quality of talent, and it has a significant growth opportunity across the global insurance sector in the coming years.

“We got to know David during the recent sale by Hg of A-Plan Group to Hyperion, and it became clear that our long-term investment approach and specialism in technology were a great match for him and his team. In addition to providing capital, Hg’s deep knowledge of software and data will help Hyperion stay at the forefront of technology adoption across the insurance sector.”

The full terms of the transaction have not been disclosed and closing is subject to obtaining relevant regulatory approvals.