Capita Group Plc, a business process outsourcing (BPO) and professional support services provider, has acquired Hero Insurance Services from insurance and investment group LV= for £15 million.
Capita Group Plc, a business process outsourcing (BPO) and professional support services provider, has acquired Hero Insurance Services from insurance and investment group LV= (formerly Liverpool Victoria) for £15 million on a cash-free, debt-free basis.
Hero provides insurance for cars, motorbikes, homes and commercial vehicles.
Its pro forma operating profit for the 12 months ended 31 December is £2.3 million on turnover of £23.9 million.
The transaction will bring greater capacity and new expertise to Capita’s insurance intermediary and administration business, the company said.
Paul Pindar, Capita Group CEO, added: “Hero operates in a number of areas of the market that differ from, but complement, those in which our existing business, BDML, operates. Its acquisition will provide new economies of scale and the opportunity to offer more ancillary products to existing customers. It will also allow us to provide a more comprehensive service offering a greater range of product lines.”
The acquisition comes on the back of robust organic growth with the company reporting major contract wins and business renewals worth £1.24bn in the 12 months to December 2008. During the same period, the company generated strong cash flows, up 17 per cent to £392 million.
Pindar added: “Organic growth was excellent with a wide range of new major contracts secured in the year and with businesses across the Group delivering robust results.”