Capita Group PLC
25 July 2005
25 July 2005
CAPITA TO ACQUIRE BDML CONNECT FROM BDML GROUP
Capita Insurance Services, part of The Capita Group Plc ('Capita'), announced
today that it is to acquire BDML Connect Ltd from the insurance group BDML.
Subject to final Financial Services Authority approval, Capita Insurance
Services will acquire BDML Connect for an initial cash consideration of £26
million and deferred consideration of up to £9 million, dependent on future
business performance over the 30 months to 31 December 2007. The consideration
will be satisfied from existing resources.
BDML Connect delivers personal lines insurance products on behalf of major
affinity brands such as Norwich Union, Admiral Insurance and RAC, providing a
solution to a broad range of insurance risks for its partners' customers through
a panel of insurers including motor, household, personal accident and travel
Included in the acquisition is Thornside, a business division within BDML
Connect, which is an intermediary specialising in pet insurance sales and
administration for major brands in the pet insurance market including Argos and
Homebase. It was recently appointed to handle pet insurance for HBOS.
BDML Insurance Solutions, a newly formed subsidiary company of BDML Connect
specialising in niche distribution channels and product lines, is also included.
This business will focus on the insurance opportunities in the Local Authority
and Travel/Leisure sectors as well as to support the Home Computer Initiative in
BDML Connect Ltd's audited accounts, including Thornside, for the 12 months to
31 December 2004 report an operating profit before tax of £2.2m on turnover of
£11.9m. Net assets on transfer will be approximately £2.9m.
The acquisition of these operations adds significantly to Capita's current
insurance capabilities and enhances Capita's proposition to the affinity market
with a comprehensive end-to-end capability that can provide sales and service,
policy management and claims handling across a broad range of personal lines
products. It will also enable Capita to provide distribution opportunities for
underwriters via the BDML panel.
BDML Connect's 430 staff will transfer to Capita and will continue to work from
their existing Portsmouth location. Sandy Dunn, Chairman and CEO of BDML
Connect, and his existing senior management team will move to Capita and remain
with the business.
Rod Aldridge, Executive Chairman of The Capita Group Plc, commented:
'This acquisition is an important step. It complements and enhances the already
substantial expertise and capabilities of our team at Capita Insurance Services.
The BDML Connect businesses and management team have an excellent reputation,
operational capability and brand. The strategic relationships with insurers and
clients of BDML Connect will directly contribute to the growth and sales
pipeline of Capita Insurance Services, whilst also enhancing our end-to-end
insurance utility offering. This acquisition together with Capita Insurance
Services' existing capabilities provides the entire infrastructure to support
and connect affinity brands and their customers with insurers' products as well
as providing access to wider underwriting capital.
We welcome the new team to Capita and look forward to developing our
capabilities together to address the opportunities in this growing marketplace.'
Sandy Dunn, Chairman and CEO of BDML Connect, commented:
'I am delighted that we will be joining The Capita Group. Capita is an excellent
parent for the business and will add value, not only to our business partners,
but also to the management and staff in the company who have helped achieve its
successful growth to date. I would also like to acknowledge the support of the
BDML Group team who have helped our company attain its good reputation and high
standing in a highly competitive, growing market. The acquisition will offer us
much greater scope to grow the business and meet the needs of all our partners.'
For further information please contact:
The Capita Group Plc +44 (0)20 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Press Office +44 (0)870 2400 488
Notes to Editors:
The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 23,000 employees at more than 200
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285
Capita has secured a number of awards including Best BPO Services Provider 2004.
Further information on The Capita Group Plc can be found at: www.capita.co.uk
Capita Insurance Services is the UK's leading provider of business support
services to the insurance industry offering professional services, operational
solutions and strategic partnerships for insurers, brokers, affinities,
corporates, government and the London market. The company is an FSA authorised
representative and supports the complete insurance lifecycle from claims
reception and policy administration, to specialist services including legal
services, medical evidence services, complex loss adjusting, supply chain
management and the delivery of fully-managed operational solutions both onshore
and offshore. Ranked No.1* in the Insurance Services market in three consecutive
years and with over 41.2% market share (source: HI Europe 2004), Capita
Insurance Services administers in excess of £12bn insurers' liability, employing
nearly 5000 staff across an integrated network of UK business centres.
This information is provided by RNS
The company news service from the London Stock Exchange