Innovation Group takes over Driven Solutions.
M2 EQUITYBITES-September 23, 2014-Innovation Group takes over Driven Solutions
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23 September 2014 - UK software solutions provider Innovation Group Plc (LON:TIG) said today it had acquired US ancillary auto protection solutions developer Driven Solutions Inc for USD7.2m (EUR5.6m) in cash.
Innovation has bought the company from AG Roadside LLC and minority shareholders, covering the purchase price through existing resources. Upon completion, Innovation paid USD900,000 and has withheld the remainder to settle a deferred liability assumed before closing. The settlement will take place over the next two to four years, the buyer said.
Following the transaction, Driven's management team will remain with the company.
Innovation will take advantage of Driven's high-quality national network and will enhance its offerings in the insurance and fleet sectors in the US, stated chief executive Andy Roberts. Furthermore, Innovation' product set will be complemented by Driven's offer, making it possible to increase margins from the supply chain in line with strategic goals.
The target is anticipated to be margin-enhancing and to generate EBITDA of about USD1.6m for the year ending on 31 December.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Sep 23, 2014|
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