25th Oct 2006 11:00
Innovation Group PLC25 October 2006 25 October 2006 THE INNOVATION GROUP PLC Acquisition of SurePlan International Pty Ltd The Innovation Group plc (the "Group"), which provides outsourcing services and software solutions to the world's insurance markets, today announces that it has acquired 100% of SurePlan International Pty Limited for a cash consideration of US$6.5m (approximately £3.5m). SurePlan International, an Australian based holding company, owns a 51% controlling interest in SurePlan USA, Inc.("SurePlan"), a leading supplier of outsourced claims management services to the vehicle leasing industry in the US. Agreement has also been reached on a deferred consideration, which is capped at a maximum value of US$7.5m (approximately £4m), based upon a percentage of net profit before tax for the year ending 30 September 2009. In line with the Group's strategy, the acquisition establishes an outsourcingcapability for motor insurance in the US. The capability includes first noticeof loss, assessing services deployment, motor accident management, subrogation(third party loss recovery), rental vehicle deployments and management, glassrepair management and roadside assistance management. The Group previouslyacquired SurePlan Australia Pty Ltd in May 2006 for approximately £3.1m. In the twelve months to 31 December 2005, SurePlan reported unaudited turnoverof US$4.1m (approximately £2.2m) and a pre-tax loss of approximately US$0.3m(approximately £0.2m). In the nine months to September 2006 unaudited revenuewas US$4.7m (approximately £2.5m) and profit before tax was US$0.7m(approximately £0.4m). Gross assets were US$2.7m (approximately £1.4m) as at 31December 2005. Hassan Sadiq, Chief Executive of The Innovation Group, said: "The acquisition of SurePlan enables the Innovation Group to enter the motorclaims management market in the US, thereby extending our presence in the USbeyond the Group's existing provision of policy and claims software. SurePlan'sleading market position within the US motor claims market mirrors the successfulcapabilities of Innovation Group's operations worldwide, leaving the Group wellplaced for future growth." Enquiries: The Innovation Group plc 01489 898300Hassan Sadiq, Chief Executive Officer Paul Smolinski, Group Finance DirectorSmithfield 020 7360 4900Sara Musgrave / Tania Wild This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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