26th Jul 2016 07:31
LONDON (Alliance News) - Charles Taylor PLC Tuesday said it has acquired a specialist provider of technical medical assistance and travel claims management services for a total consideration of up to GBP29.8 million.
Charles Taylor, which provides services to the global insurance market, said its subsidiary has purchased CEGA Solutions Ltd, the holding company of the CEGA Group, to add "technical, high value-add services" to the company's existing capabilities.
"The transaction marks an important step forward in Charles Taylor's strategy to grow by developing new professional service business lines, which are closely-related to its core business, through targeted acquisitions," said Charles Taylor.
"The acquisition is Charles Taylor's second significant investment with the proceeds of its rights issue of March 2015 which have now largely been deployed," the company added.
The first major investment following the rights issue was in Fadata, a specialist provider of software solutions to the global insurance industry, which was completed in December 2015.
Charles Taylor has paid GBP23.8 million for the acquisition, of which GBP700,000 was paid in shares. Another GBP6.0 million could be paid in the next two years, of which up to 20% could be settled in shares, depending on CEGA's ability to hit targets.
Charles Taylor said the GBP700,000 was settled through 285,717 shares, suggesting the price was around 245.0 pence each.
CEGA provides an integrated end-to-end service that combines medical assistance with claims and case management, pre-travel advice, medical screening and corporate travel contingency planning.
CEGA has long-standing relationships with large, high profile insurers, some of which are new to Charles Taylor, and these offer the opportunity to cross-sell the group's other professional services. In addition, Charles Taylor's businesses and its major clients use medical assistance services.
The new acquisition will continue to be run by its current management team.
Charles Taylor shares were untraded on Tuesday, last trading at 260.0 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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