5th Apr 2007 11:22
Innovation Group PLC05 April 2007 5 April 2007 THE INNOVATION GROUP PLC Acquisition of Conversant Data Ltd The Innovation Group plc ("the Group"), which provides outsourcing services andsoftware solutions to the world's insurance providers, today announces that ithas acquired the remaining 75% of Conversant Data Ltd ("Conversant") for £3.0million. The Group initially acquired 25% of Conversant, a leading provider offraud detection services, in January 2006 at a cost of £1.0 million. Theconsideration of £3.0 million comprises £1.6 million in cash with the balance of£1.4 million satisfied by the issue of 4,301,980 new ordinary shares. Inaddition, a further 762,199 shares will be issued in connection with thepurchase of minority interests in a subsidiary of Conversant and an associatedtransaction. All of the shares will be issued at a price of 32.8p. Conversant is a leading provider of anti-fraud services to the insurance market.Established in 2003, it principally services the UK market, but also providesservices to Eastern Europe. Conversant enables insurers to outsource the wholeor parts of their anti-fraud activities. Conversant has a proven track record indetecting and helping to prevent fraud within insurance claims. All ofConversant's revenue is earned on a transactional basis. The existingmanagement team will continue to manage Conversant after the completion of thetransaction. ABI estimated that in 2005 fraud cost the UK insurance industry £1.5 billion. Application will be made to the Official List of the UK Listing Authority and tothe London Stock Exchange for admission of the 5,064,179 new shares to theOfficial List and to trading on the London Stock Exchange for listed securitiesin due course. It is expected that dealings in the new shares, which will rankpari passu in all respects with the existing ordinary share capital of theGroup, will commence on Friday 13 April 2007. The total number of shares inissue following this allocation of shares will be 642,531,591. Hassan Sadiq, Chief Executive Officer of The Innovation Group plc, said: "Completing the acquisition of Conversant gives Innovation Group the ability toextend its offering into significant fraud identification and investigationservices, in keeping with its mission to offer the global insurance industry theworld's best products, technology and practices. Following a period ofintegration during the rest of the financial year, the acquisitions are expectedto be earnings enhancing in their first full financial year within the Group." Enquiries: The Innovation Group plc Hassan Sadiq, Chief Executive Officer +44 (0) 1489 898300 John Sidwell, Group Finance Director College Hill Associates Ltd Sara Musgrave +44 (0) 20 7457 2020 Ben Way This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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