Private equity firm Bain Capital has agreed to acquire UK-based insurance firm Esure in an all cash transaction valued at approximately £1.2bn.

The acquisition will be carried out by Bidco, a wholly-owned subsidiary of funds advised by Bain Capital Private Equity, and its affiliates.

The offer represents a premium of about 37% to the closing per Esure share of 204 pence on the 10 August 2018.

Esure chairman Sir Peter Wood said: “Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800m of annual gross written premiums, and returned just under £300m to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare.

“As a private company and with Bain Capital’s backing, esure will be able to invest behind the innovation required to fully realise the opportunities in this market.”

He will continue as chairman after completion of the acquisitions.

Bain Capital

While Luca Bassi, a managing director at Bain Capital Europe, said: “Esure’s nimble and focused approach, lean structure and strong use of technology positions it to grow in a changing insurance industry: insurance companies with smarter operations and better technology are best placed to meet customers’ needs at competitive prices whilst delivering profitable growth.”

The transaction is pending receipt of concerned regulatory approvals.