Carlyle Snags Insurance SaaS Buyout

Buyout group Carlyle announced its latest acquisition last weekend. The U.S. firm will purchase U.K.-based Software-as-a-Service company Innovation, which provides claim processing services to the insurance industry.

According to reports in The Telegraph on Saturday (Aug. 29), Carlyle agreed on a price tag of around $772 million for the takeover. It’s a strong value on a company whose market capitalization hit just $77 million in 2009, reports said.

Innovation offers businesses the claims processing software it uses for the motor and property insurance markets as a standalone product.

In a statement, Non-Executive Chairman at Innovation David Thorpe said the merger will fuel product development and, of course, innovation within the company. “Carlyle brings a commitment and vision to the ongoing investment requirements of the business, providing innovation with enhanced financial and operational flexibility as the group seeks to execute its strategy in the longer term,” he said.

Innovation was launched by Rob Terry, the founder of outsourcing firm Quindell. Today, reports said Innovation is headed by Chief Executive Andy Roberts and has a staff roster of more than 3,000 employees. Its current market capitalization is more than $668 million, reports noted.

The news, originally reported by Sky News on Friday (Aug. 28), stated that the two had been in buyout talks for several weeks now. Analysts said the deal is likely part of Carlyle’s interest in the use of telematics in the motor insurance space, one acquired through its ownership of roadside recovery service RAC, reports said.

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