25th Jul 2005 07:01
Capita Group PLC25 July 2005 25 July 2005 CAPITA TO ACQUIRE BDML CONNECT FROM BDML GROUP Capita Insurance Services, part of The Capita Group Plc ("Capita"), announcedtoday that it is to acquire BDML Connect Ltd from the insurance group BDML. Subject to final Financial Services Authority approval, Capita InsuranceServices will acquire BDML Connect for an initial cash consideration of £26million and deferred consideration of up to £9 million, dependent on futurebusiness performance over the 30 months to 31 December 2007. The considerationwill be satisfied from existing resources. BDML Connect delivers personal lines insurance products on behalf of majoraffinity brands such as Norwich Union, Admiral Insurance and RAC, providing asolution to a broad range of insurance risks for its partners' customers througha panel of insurers including motor, household, personal accident and travelinsurance. Included in the acquisition is Thornside, a business division within BDMLConnect, which is an intermediary specialising in pet insurance sales andadministration for major brands in the pet insurance market including Argos andHomebase. It was recently appointed to handle pet insurance for HBOS. BDML Insurance Solutions, a newly formed subsidiary company of BDML Connectspecialising in niche distribution channels and product lines, is also included.This business will focus on the insurance opportunities in the Local Authorityand Travel/Leisure sectors as well as to support the Home Computer Initiative inthe UK. BDML Connect Ltd's audited accounts, including Thornside, for the 12 months to31 December 2004 report an operating profit before tax of £2.2m on turnover of£11.9m. Net assets on transfer will be approximately £2.9m. The acquisition of these operations adds significantly to Capita's currentinsurance capabilities and enhances Capita's proposition to the affinity marketwith a comprehensive end-to-end capability that can provide sales and service,policy management and claims handling across a broad range of personal linesproducts. It will also enable Capita to provide distribution opportunities forunderwriters via the BDML panel. BDML Connect's 430 staff will transfer to Capita and will continue to work fromtheir existing Portsmouth location. Sandy Dunn, Chairman and CEO of BDMLConnect, and his existing senior management team will move to Capita and remainwith the business. Rod Aldridge, Executive Chairman of The Capita Group Plc, commented: "This acquisition is an important step. It complements and enhances the alreadysubstantial expertise and capabilities of our team at Capita Insurance Services.The BDML Connect businesses and management team have an excellent reputation,operational capability and brand. The strategic relationships with insurers andclients of BDML Connect will directly contribute to the growth and salespipeline of Capita Insurance Services, whilst also enhancing our end-to-endinsurance utility offering. This acquisition together with Capita InsuranceServices' existing capabilities provides the entire infrastructure to supportand connect affinity brands and their customers with insurers' products as wellas providing access to wider underwriting capital. We welcome the new team to Capita and look forward to developing ourcapabilities together to address the opportunities in this growing marketplace." Sandy Dunn, Chairman and CEO of BDML Connect, commented: "I am delighted that we will be joining The Capita Group. Capita is an excellentparent for the business and will add value, not only to our business partners,but also to the management and staff in the company who have helped achieve itssuccessful growth to date. I would also like to acknowledge the support of theBDML Group team who have helped our company attain its good reputation and highstanding in a highly competitive, growing market. The acquisition will offer usmuch greater scope to grow the business and meet the needs of all our partners." -ends- For further information please contact: The Capita Group Plc +44 (0)20 7799 1525 Rod Aldridge, Executive Chairman Paul Pindar, Chief Executive Shona Nichols, Corporate Communications Director Press Office +44 (0)870 2400 488 Notes to Editors: The Capita Group Plc is the UK's leading provider of integrated professionalsupport service solutions. The Group's service capabilities encompass customerservices, financial services, human resource services, software services,systems and strategic support and property services delivered to both publicsector and private organisations. With over 23,000 employees at more than 200offices across the UK and Ireland, Capita is quoted on the London Stock Exchange(CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285million. Capita has secured a number of awards including Best BPO Services Provider 2004. Further information on The Capita Group Plc can be found at: www.capita.co.uk Capita Insurance Services is the UK's leading provider of business supportservices to the insurance industry offering professional services, operationalsolutions and strategic partnerships for insurers, brokers, affinities,corporates, government and the London market. The company is an FSA authorisedrepresentative and supports the complete insurance lifecycle from claimsreception and policy administration, to specialist services including legalservices, medical evidence services, complex loss adjusting, supply chainmanagement and the delivery of fully-managed operational solutions both onshoreand offshore. Ranked No.1* in the Insurance Services market in three consecutiveyears and with over 41.2% market share (source: HI Europe 2004), CapitaInsurance Services administers in excess of £12bn insurers' liability, employingnearly 5000 staff across an integrated network of UK business centres.www.capitainsuranceservices.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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