The Innovation Group plc acquires Value Partners N.V.
14 June 2012 - The Innovation Group plc (LSE: TIG.L), a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries, is pleased to announce the acquisition of Value Partners N.V. (“VP”), a leading provider of outsourcing services to the insurance and independent broker communities in Belgium.
The business was established in 1996 with the primary objective of providing 24x7 helpdesk services to independent brokers on a subscription basis. Subsequently, the range of services offered has expanded into telesales and claims management services to insurance companies. The business currently handles approximately 500,000 inbound calls per annum in Belgium and employs 50 full time employees. The acquisition provides our existing Belgium business the opportunity to increase managed accident repair volumes through access to the claims currently being handled by VP.
The maximum total consideration is €5.0m (£4.0m) of which €2.5m (£2.0m) is an initial cash payment on the date of completion. In addition there is deferred consideration of €2.5m (£2.0m), contingent on VP achieving specific profit and volume targets. Of the deferred consideration €1.0m (£0.8m) will be settled by the issue of 4,000,000 new Innovation Group shares. The number of deferred consideration shares is fixed and has been calculated using a share price of 20p.
Commenting on the acquisition, Andy Roberts, CEO of The Innovation Group said:
“I am delighted to be announcing the acquisition of Value Partners N.V. today. This new partnership is an additional and important step in our strategy to invest in and acquire businesses that strengthen our existing service core, allow us to capture additional value within the Group and provide us with a clear competitive advantage.”
The Innovation Group plc
Andy Roberts, Chief Executive Officer
Jane Hall, Group Finance Director
Tel: +44 (0) 1489 898 300
Edward Bridges / Matt Dixon / Tracey Bowditch
Tel: +44 (0) 20 7831 3113
About Innovation Group:
The Innovation Group plc (LSE: TIG.L) is a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries. Innovation Group provides contact centres, repair networks, process management, supply chain and technology operations and decision support analytics to support accident management, repair and estimation and claims management services. Innovation Group has over 800 global clients including AXA, RSA, American Modern Insurance Group, LeasePlan, The Ford Motor Company, Aviva, Toyota and Zurich. The Group processes more than 4 million claims per year with 20 per cent direct claims cost saving achieved. Innovation's 2,300 people are located in the United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, India, Pakistan, South Africa, Spain and United States. www.innovation-group.com