Innovation Group Agrees to $765m Takeover Bid from Carlyle Group

Innovation Group, which is listed on the London Stock Exchange, will receive 40p per share in cash, representing a 13.5% premium to the firm’s closing price on Thursday.

(Image credit: Dollar Photo Club.) 

Innovation Group (U.K.-based, U.S. headquarters Farmington, Conn.) has agreed to a £499 ($765) takeover bid by private equity firm Carlyle Group (Washington, D.C.). Innovation Group, which is listed on the London Stock Exchange, will receive 40p per share in cash, representing a 13.5% premium to the firm’s closing price on Thursday.

Matthew Josefowicz, President & CEO, Novarica.

Matthew Josefowicz, President & CEO, Novarica.

Innovation Group expects increased financial and operational flexibility as a result of the deal, as well as an opportunity to accelerate its growth plans, according to a company statement.

“Private Equity firms have become increasingly interested in the insurance software and services market over the last few years,” comments Matt Josefowicz, president and CEO of research and advisory firm Novarica (New York). “One can see how Innovation Group with its size, recurring services revenue from global BPO operations, and software portfolio would be an attractive target for a PE firm looking to do more in the space.”

David Thorpe, Innovation Group.

David Thorpe, Innovation Group.

(Related: Innovation Group and Deloitte Partner on Core System Implementation Services)

Innovation Group member of the board and non-executive chairman David Thorpe comments, “Carlyle’s offer represents a compelling opportunity for Innovation’s shareholders to immediately and fully realize the value from their investment, in cash, and at a premium.”

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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