Gordons advises insurance specialist Direct Gap on being acquired by Axia Partners
Thursday 19th March 2020
Gordons has advised Hebden Bridge-based guaranteed asset protection (GAP) insurance specialist Direct Gap as it was acquired by technology and insurance focused investment company Axia Partners.
Established more than 11 years ago, Direct Gap was launched to provide an online gap insurance product providing customers with up to 75 per cent savings on motor dealer gap insurance. Axia Partners has acquired a 100 per cent shareholding in the business for an undisclosed sum.
A team from Gordons comprising corporate partner, Duncan Firman, and corporate solicitors, Lucy Leyland and Lisa Murphy, advised Direct Gap on the sale.
Direct Gap has been growing at 38 per cent compound annual growth rate (CAGR) for the past four years and is one of the largest online providers of GAP insurance products direct to the public. The company has policy renewals in the thousands annually, commercial partnerships with blue-chip brands such as Confused.com and unrivalled levels of customer service, with more than 1,500 five-star reviews on Feefo in the last twelve months alone.
The acquisition expands Direct Gap’s national network across insurance and technology-focused solutions. This will begin with the launch of a southern office in Brighton to allow the company to better serve its national client base. Direct Gap’s founder and managing director, James Cartwright, is remaining with the company to lead its growth strategy.
Commenting on the acquisition, Axia Partners director, Michael Jennings said: “Axia Partners was founded with a focus on assisting leading technology enabled companies to scale organically through our partners network and experience in industries such as investment banking, insurance and technology consultancy. We are very enthusiastic about what the future holds for Direct Gap and are looking forward to working closely with James.”
Direct Gap’s James Cartwright added: “We share the same vision for the business and with Axia Partners backing, we will be able to accelerate our plans. As a combined team, we are now hugely excited by the opportunities that the future holds for Direct Gap and look forward capitalising upon them.”
Gavin Lamb, director of Bradford-based chartered accountancy firm Naylor Wintersgill, provided Direct Gap with financial advice. Manchester-based Blackstone Solicitors advised Axia Partners, led by partner, Jabbar Khawar.
James Cartwright commented “Both parties wanted to move quickly to secure the deal and this was helped significantly by the capabilities of our teams at Gordons and Naylor Wintersgill. Their expertise, diligence and commercial acumen made it happen at pace.”