Innovation Group reveals Â£46m acquisition after "defining year"
The Innovation Group, a Fareham-based listed provider of software services to the insurance and motor industries, has acquired motor service plan business EMaC in a deal worth up to £46m which provides an exit for private equity house Mobeus Equity Partners.
Innovation Group chief executive Andy Roberts, who this morning revealed his intention to step down, said it has been "nothing short of a defining year" for the company.
EMaC has been purchased from chief executive Angela Barrow and Mobeus for a cash consideration of £36m on completion of the deal, with a further payment of up to £10m dependent on profit growth.
Barrow has committed to remaining with the business for at least two years.
Founded in 2004, EMaC counts some of the motor industry's most well-known manufacturers as customers and provides motor service plans in the UK and Republic of Ireland.
It underwent a management buyout in 2011, backed by Mobeus.
Innovation Group said the acquisition provides it with a platform to pursue the wider geographic expansion of motor service plans and warranties.
It intends to develop the company into an international warranty, and service and maintenance company.
The announcement of the acquisition comes as Innovation Group posts its financial results for the year ended 30 September 2014. Turnover grew by 3 per cent from £204.4m to £209.8m, while pre-tax profits slipped from £14.4m to £13.2m after acquisition and restructuring costs.
Roberts said: "It is clear that EMaC will make an excellent addition to our group - not only in terms of the service and scale that it brings but also in the culture and ethos of its people. Together we have big plans for growth in motor - not just here in the UK but internationally where the opportunity is large and within our reach."
Angela Barrow, chief executive of EMaC, added: "This latest chapter in the EMaC story is a very exciting one, which will support our aims to broaden our proposition and move into new markets. The EMaC brand will continue to be an active part of the UK motor retailing landscape and all of our customers can be assured that they will continue to benefit from our distinctive service led ethos. I am excited to join the Innovation Group and will use this change to accelerate our development plans."
Furthermore, Andy Roberts today revealed that he has agreed a "long-term and orderly succession plan" with the board. The news came after he announced that Jane Hall would take up the role of chief executive of the group's BPS division and Lewis Miller, currently managing director of its North American BPS business, would succeed Hall.