23rd Sep 2014 07:04
LONDON (Alliance News) - The Innovation Group PLC Tuesday said it has agreed to buy Driven Solutions Inc and associated companies for USD7.2 million.
Innovation, which provides software and business process services to the insurance, fleet, automotive and property industries, said it would pay USD0.9 million upon completion of the deal, with the remainder to be withheld in order to settle a pre-closing deferred liability which had been assumed upon the acquisition and which will be settled over the next two to four years.
The deal will strengthen Innovation's US business process services arm and will broaden the company's product set and increase margins from its supply chain, it said.
Driven posted a pretax loss of USD0.3 million in the year to December 31, Innovation said, having been hit by depreciation and amortisation on acquired intangible assets.
"We are very pleased with this acquisition, a strategic fit which will broaden our service proposition in North America. It also follows closely our model as we bring an additional, margin enhancing piece of the supply chain into our offering.We look forward to working with the team as we push ahead with our US ambitions," said Innovation Chief Executive Officer Andy Roberts.
Shares in Innovation were slightly lower at the open on Tuesday, down 0.3% to 27.42 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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