Travers Smith LLP has advised long-standing client TA Associates on its investment in Netrisk, Hungary's leading online independent insurance marketplace. TA Associates invested alongside existing investor the MCI Group, which first invested in Netrisk in December 2017.
TA Associates will acquire a 75% stake in Netrisk for EUR 55 million and MCI Group will retain a 23.7% stake in Netrisk. Both investors intend to actively help build value for the insurtech leader on a larger, regional scale. Management will hold a 1.3% stake in the group going forward.
The non-life insurance market in Hungary is estimated at USD 1.8 billion, of which the online channel accounts for more than 20%, which is significantly more than other countries in the region. In addition to continued domestic growth, MCI and TA Associates believe that Netrisk has the opportunity to become a regional digital leader, providing nearly 100 million consumers in CEE with better access to a modern insurance product management platform.
Maxime Cancre, Senior Vice President at TA Associates:
"The CEE region is a very interesting area where we believe that we can implement TA’s strategy of investing in growing technology companies. We believe that Netrisk is a unique asset in the region, with a high-quality and predictable business model, strengthened by a well-established market position and a very strong and experienced management team. Together with MCI, which has extensive digital private equity experience in this part of Europe, we will work to support Netrisk’s local growth in Hungary and will explore ways to build Netrisk into a regional leader in the distribution of insurance products, both online and offline."
The Travers Smith team was led by Co-Head of Corporate and Private Equity & Financial Sponsors Head and Partner, Paul Dolman, assisted by Associates Matt Powrie and Hattie Langworth. Finance advice was provided by Finance Partner Donald Lowe, assisted by Senior Associate Will Sheridan and Associate Michael Leadbeater.
János Tóth (Partner) and Márk Chiovini (Associate) of Wolf Theiss Budapest provided Hungarian local law advice. Polish local law advice was provided by Jacek Michalski (Partner) of Wolf Theiss Warsaw.
Netrisk, management and the MCI Group were advised by Deloitte Legal.