19th Jan 2006 07:01
Innovation Group PLC19 January 2006 19 January 2006 THE INNOVATION GROUP PLC Acquisition of German outsourcing company The Innovation Group (the "Company"), which provides outsourcing services and software solutions to insurance providers, today announces that it has acquired 100 per cent of Servicekonzept AG for €14 million (approximately £9.6 million). The consideration paid comprises €10 million in cash with the balance of €4 million satisfied by the issue of 9,300,754 new ordinary shares of the Company at a value of 29.475 pence each (the "Consideration Shares"). Under the terms ofthe sale and purchase agreement, the vendors are required to hold the Consideration Shares for a period of 24 months. In line with the Company's strategy to expand its product offering, we are nowable to offer outsourcing services for both motor and household insurance, asServicekonzept AG is the leading supplier of damage assessment services to thehousehold insurance industry in Germany. In the twelve months to 31 December 2004, Servicekonzept reported turnover of€4.3 million (£2.9 million) and made a pre-tax profit of approximately €0.8million (£0.5 million). Gross assets were €2 million (£1.4 million) as at 31December 2004. The expected turnover and pre-tax profit for the year to 31December 2005 are approximately €6.3 million (£4.3 million) and €1.2 million(£0.8 million) respectively. Hassan Sadiq, Chief Executive of The Innovation Group, said: "The acquisition of Servicekonzept enables the Company to enter the householdinsurance market in Germany, thereby expanding our product offering outside themotor insurance industry. Servicekonzept's understanding of the householdmarket, combined with our insurance claims management knowledge, will enable usto offer greater benefits to existing and new clients. Germany is the largestEuropean household market with significant untapped potential for insuranceclaims management. We now have German offices in Stuttgart, Cologne and Berlin,effectively covering all major insurance centres." Enquiries: The Innovation Group plc 01489 898300Hassan Sadiq, Chief Executive OfficerPaul Smolinski, Group Finance Director SmithfieldSara Musgrave 020 7360 4900Jo Thomas This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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