Bridges and Magenta Partners have sold insurance business Halo to global insurance group Cover-More.
Bridges and Magenta launched Halo in 2009, backing founder and chief executive Ernesto Suarez.
Through its online retail platform iCarhireinsurance.com, and partnerships with other aggregators, Halo helps consumers save money by buying cheaper insurance for rental cars online, rather than paying at the rental desk.
Halo has websites in six different languages and has recently moved into a second product vertical with the launch of InsuretheGap.com, which offers GAP (Guaranteed Asset Protection) insurance policies that are substantially cheaper than those offered by car dealerships.
The company’s EBITDA has increased at a compound annual rate of 145 per cent over the last four years. It sold 325,000 policies last year, while achieving a 3x return on its cost of customer acquisition.
“Halo is a great example of a high-growth consumer champion business: its innovative insurance offering has succeeded in disrupting the marketplace and making car rental insurance more affordable and accessible,” Alison Price, Investment Manager at Bridges Fund Management, said.
The shareholders were advised by Cavendish Corporate Finance and Osborne Clarke.