3rd May 2018 11:40
LONDON (Alliance News) - Insurance services provider Charles Taylor PLC on Thursday announced a GBP17.6 million share placing to fund a new acquisition.
The company is to buy the Inworx group of companies to an initial consideration of USD22.5 million. Including performance-related deferred payments, the total could reach USD50.5 million.
This initial payment will made up of USD19.0 million in cash and the rest in shares in Charles Taylor.
The acquisition is conditional on Charles Taylor successfully completing the capital raise. The placing is being enacted via an accelerated bookbuild to be run by Liberum Capital Ltd.
Inworx is an insurance-focused technology consultancy and software provider to the insurance market, Charles Taylor said. It operates in 15 countries in Latin America, and will become part of Charles Taylor's InsureTech business.
In its year to September 2017, Inworx posted adjusted pretax profit of USD3.7 million on revenue of USD14.7 million.
Charles Taylor Chief Executive David Marock said: "This acquisition marks another major step in delivering Charles Taylor's growth strategy. I am looking forward to welcoming the team from Inworx to the Charles Taylor family.
"Technology is transforming the way that insurance is underwritten and transacted globally. The acquisition of Inworx is one of the largest we have undertaken as a group. It demonstrates our commitment to growing our insurance technology capability, both as an enabler for the industry and to deliver the group's services. These support every stage of the insurance lifecycle and every aspect of the insurance operating model."
The company also on Thursday said its InsureTech business has won a three-year contract with the London Market Group to deliver a delegated authority solution to the Lloyd's and London company insurance market.
It gave no financial details of the contract, but did say it can be extended for up to a further seven years.
Shares were up 3.1% at 269.00 pence each on Thursday.
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