Brightside, the Bristol-based specialist insurer, could be taken private in a deal led by co-founder and chief executive Arron Banks.
Mr Banks, (pictured) who resigned from the board on Wednesday with immediate effect, is understood to have the backing of a private equity firm. The bid would buy out institutional shareholders and take the company private.
Shares in Brightside fell after it announced that Mr Banks had resigned.
In a statement to the London stock Exchange, the fast-growing firm said: “The board has recently focused on succession planning and the company’s current insurance broking director Martyn Holman will take over as CEO with immediate effect.
“Arron has taken this opportunity to step down from the board to review his options and will remain focused on his private interests.”
Mr Holman, who has been with Brightside since it was formed, joined the board on June 1.
Brightside also recently announced that director Leslie Hughes is to resign from the board next week.
The firm, formed 11 years ago with two staff, now employs more than 600 people in its head office at Aust and a string of call centres.
It has grown every year since its launch and last year increased pre-tax profits by nearly 35% to £13.6m on revenue up 21.5% at £80.4m.
Last July Mr Banks collected £2m from the sale of 8m shares at 25p each.
The firm was also named as 2011 West of England Business of the Year, the region’s most-coveted business award.
By midday on Wednesday its shares were down 6.25% at 18.75p although they had recovered towards the end of the week.
