We have advised Connection Capital, the specialist private client alternative investment business, on the sale of its online insurance platform, Tempcover, to RVU.
Founded in 2006, Tempcover is an insurtech business specialising in temporary insurance solutions. The business has a team of 51 employees and works with a panel of insurers and 85 corporate partners and brokers to bring short-term insurance solutions to motorists. Tempcover won a Queen’s Award for Enterprise: Innovation in 2017.
RVU, the company behind Uswitch, Confused.com and Money.co.uk, offers consumers the ability to compare and switch across a range of utilities and financial services products, and the acquisition of Tempcover bolsters its motor insurance offering.
Private investor clients of Connection Capital invested in Tempcover’s MBO in December 2017 with a further follow-on investment made in May 2019. Gateley advised on both the original management buy-out as well as the follow-up investment.
Alan Inskip, CEO and founder of Tempcover, said: “We have continued to exceed growth expectations, and this transaction is good news for everyone. Being backed by RVU presents us with the exciting opportunity to capitalise on the broader motor insurance market. It also creates the opportunity for even further growth and development not only for Tempcover as a brand, but for our panel of insurers, our commercial partners and, most importantly, our employees.”
Miles Otway, partner at Connection Capital, added: “This is a great outcome for the management team at Tempcover and our investors. Tempcover has gone from being a tech-enabled broker to a true insurtech pioneer. The management team’s hard work has delivered on the potential we saw in the company back in 2017.”
Corporate partner Victoria Elliott, who led the Gateley deal team, said: “This is a significant transaction which was completed in a short timescale, requiring all parties to work extremely efficiently to get the deal through to exchange.
It has been a real pleasure to have supported all the shareholders through the entire investment lifecycle, from MBO right through to exit. We would like to wish Alan and all the team the very best for the future and the next stage of Tempcover’s development.”