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Innovation Group bolsters its storm damage claims division

February 18, 2014


INNOVATION Group has entered into a sale and purchase agreement to buy LAS Claims Management from Gresham Private Equity in a 35m cash deal, it announced yesterday.

Innovation provides software solutions for insurance, fleet, motor and property industries and is seeking to expand its property and motor portfolio.

The acquisition will be partfunded by a recent 65m share issue. The company said that the acquisition is an important step towards its goal of becoming the UK's top motor claims manager.

LAS manages building repair claims mainly from water damage, known in the insurance industry as wet perils, and it will bolster Innovation's UK property division from a claims spend of 100m, mainly from its dry perils market, to 1.3bn at a time when the UK has suffered severe flooding.

"The combination of the two businesses will generate both significant revenue synergies and operational leverage," said Innovation in a statement on the deal yesterday.

Innovation Group also said it was on track to meet its expectations for the current financial year in a interim management statement yesterday. Both the acquisition and the fundraising are expected to be completed by the end of March.

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Source: City A.M. (UK)

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