Simply Business, an online insurance platform for SMEs, is being sold to US giant The Travelers Companies for $490m.
The transaction, a statement said, is expected to close in the third quarter of this year.
Founded in 2005, Simply Business was acquired by private equity firm Aquiline Capital Partners in a £120m deal last year.
Jason Stockwood, chief executive officer of Simply Business, said in a statement: “This is a tremendous opportunity for our company and employees, as well as a strong validation of our business model.
“I am excited about Simply Business benefiting from Travelers’ extensive knowledge of the US market as we develop our approach there, as well as the resources it has to support potential expansion into additional markets. Our shared values and commitment to innovation make this transaction a perfect fit,” he added.
The company claims to serve more than 425,000 microbusiness customers and has offices in London, Northampton and Boston.
Alan Schnitzer, chief executive officer of Travelers, also commented on the news: “Simply Business is a profitable and growing technology company with impressive strategic digital capabilities, leading digital commerce talent and proven small business insurance expertise.
“With technology and innovation driving customer preferences and expectations, advancing our digital agenda to best serve our customers and the marketplace is a key strategic priority. As an important part of that agenda, we also look forward to working with our agent and broker partners as we seek to deploy Simply Business’ capabilities with them to make the small commercial insurance transaction easier, faster and more efficient,” the CEO added.