The Innovation Group plc Acquisition of Gemini Vehicle Solutions Limited
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 Gemini Vehicle Solutions Ltd ("GVS") for a total cash consideration of £4.5m. Of the total consideration, £1.5m will be deferred for a maximum of 12 months, and is contingent on volume targets. Following the acquisition, both Andy Hopkins and Tim Hopkins will resign as directors but Tim Hopkins will remain with the business in a business development and client support role.
GVS is a UK provider of outsourced motor claims and accident management services to the insurer, fleet, and intermediary markets with a focus on third party intervention and non-fault motor claims services.
The business handles approximately 20,000 rental and repair transactions per annum. Revenue, disclosed on a gross basis which includes the cost of the claim, and pre-tax profit for the year ended 31 December 2012 were £12.4m and £0.8m respectively. Net revenue - the basis on which Innovation Group will report going forward - was £2.3m. Gross assets at 31 December 2012 amounted to £3.1m. The acquisition is immediately earnings accretive.
Based in Kidderminster, Worcestershire and employing over 45 people, GVS will further enhance the Group's outsource service proposition to its UK insurance, fleet and intermediary clients, specifically in the area of third party intervention services. This core competency is seen as a strategic initiative for the Group as, in the current changing UK insurance environment, it is a fully transparent and ethical revenue source which, by its nature, is safeguarded from changes to referral fees and other related legislation.
Commenting on the acquisition, Andy Roberts, CEO of The Innovation Group said:
"Gemini Vehicle Solutions is an excellent strategic acquisition for the Group and for our UK Motor Claims Management business in particular. As one of the UK's largest providers of outsourced accident management services, GVS's service offering will help us to further broaden our outsource proposition in the marketplace. This transaction is evidence of our strategy of investing in propositions that create a true competitive advantage for the Group and significant value for our clients, built on the foundations of a strong track record of service delivery and balance sheet strength."