(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.
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.”
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.”