TIDMCTR
RNS Number : 8332T
Charles Taylor PLC
23 July 2015
Date: 23 July 2015
On behalf of: Charles Taylor plc ("Charles Taylor" or the
"Company")
Embargoed until: 0700hrs
Charles Taylor plc
Acquisition of significant minority stake in Fadata AD
Charles Taylor plc announces today that it and The Riverside
Company ("Riverside"), a global private equity firm, have
collectively entered into an agreement to acquire a majority
interest in the owner of Fadata AD ("Fadata"), a specialist
provider of software solutions to the global insurance industry.
Fadata provides an end-to-end policy administration system (INSIS),
used by many life, general insurance and health insurance
businesses. The INSIS platform was top rated in both Gartner's and
Celent's reviews of Policy Administration Systems in 2014.
The establishment of this joint venture between Charles Taylor,
Riverside and the management of Fadata forms part of Charles
Taylor's overall business strategy to further develop its
professional service business lines both organically and through
acquisitions, joint ventures and business investments. This is
Charles Taylor's first transaction since its Rights Issue in March
2015.
Charles Taylor has a well-established insurance technology
services business, providing specialist and bespoke technology
solutions along with systems development and implementation support
for numerous insurance-related clients across the global insurance
market. By entering into this joint venture, Charles Taylor will
both support the growth of Fadata's software business globally and
further expand its own capabilities and service offering for its
insurance-related clients worldwide.
Under the joint venture Charles Taylor will acquire a 31.25%
equity share of REF Wisdom Limited, a newly incorporated UK
resident holding company, with the 68.75% majority share of REF
Wisdom Limited being acquired by Riverside. REF Wisdom Limited will
own an 80% equity share of REF Wisdom 2 Limited which in turn will
own 100% of the equity of Fadata. The remaining 20% of REF Wisdom 2
Limited will be owned by the management of Fadata. Charles Taylor's
interest could be diluted if it fails to take up any future rights
offer.
Charles Taylor's investment in REF Wisdom Limited is EUR5.1m, to
be met from existing cash resources. The gross and net assets of
REF Wisdom Limited will be EUR16.1m on completion. In 2014, the
unaudited adjusted Fadata results were revenue of EUR11.7m and
EBITDA of EUR4.4m. The transaction is expected to complete by
October 2015.
The terms of the joint venture agreement entitle Riverside to
realise REF Wisdom Limited's investment in Fadata at some time in
the future; Charles Taylor may be required to dispose of part or
all of its holding as part of the same transaction. Charles Taylor
will also have the opportunity to submit a bid to acquire part or
all of the other parties' holdings at that time should it so
wish.
David Marock, Group Chief Executive Officer, Charles Taylor
said:
"The global insurance technology market is growing rapidly with
increasing demand from insurers to replace legacy systems, bring
new products to market quickly and capitalise on the potential of
big data. With our support and market presence, we believe that
Fadata is well-positioned to become a world leader in the global
insurance-related software market."
"A sizeable proportion of Charles Taylor's business is already
dedicated to providing insurance technology solutions and services
to insurance clients across the globe. This joint venture will
enable us, working closely with Fadata, to accelerate both Fadata's
and our growth in the global technology market."
"I am particularly pleased that we will be investing in Fadata
alongside Riverside. Riverside has completed more than 25
investments in its software and information technology
specialisation and has experts with substantial experience in
growing software companies."
Martin Scott, Partner, The Riverside Company said:
"We are very excited to be making this investment in Fadata
alongside Charles Taylor. Fadata's flagship product, INSIS, is a
flexible state-of-the-art modular software solution for insurance
providers, which has already been adopted by insurance businesses
across the world. Charles Taylor's presence and reputation in the
global insurance market will enable us to work together to
accelerate Fadata's growth to become one of the market-leading
insurance software solutions providers globally."
-ENDS-
For further information:
Charles Taylor plc
David Marock, Group Chief
Executive Officer
Mike Lord, Group Communications Via Redleaf Polhill
Director
Redleaf Polhill ct@redleafpr.com
Rebecca Sanders-Hewett
Charlie Geller
Susie Hudson 020 7382 4730
Notes to editors
About Charles Taylor
Charles Taylor plc is a leading provider of professional
services to clients across the global insurance market. The Group
has been providing services since 1884 and today employs over 1,200
staff in 69 offices spread across 28 countries in the UK, the
Americas, Asia Pacific, Europe, the Middle East and Africa.
The Group offers services, principally on a fee-based model and
operates through three businesses - Management, Adjusting and
Insurance Support Services. Charles Taylor also owns insurers,
creating value through select acquisitions and operational
efficiency.
Further information is available at www.ctplc.com.
About The Riverside Company
The Riverside Company is a global private equity firm focused on
investing in growing enterprises valued at up to $300
million/EUR200 million. The firm's global portfolio includes more
than 75 companies. Since its founding in 1988, Riverside has
invested in more than 380 transactions.
About Fadata
Fadata was established in 1990. It has a strong profile in
information system development and implementation of software
related projects. Its reputation was built by providing high
quality engineering solutions and services to companies from the
Financial, Public, and Utilities sector. INSIS, Fadata's flagship
product, is a flexible state-of-the-art modular software solution
that provides full coverage of all aspects of insurance business
area both horizontally and vertically. Headquartered in Bulgaria,
Fadata provides global distribution system and supports
subsidiaries as well as partners' network in more than 30
countries.
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences are "forward-looking statements"
within the meaning of the United States federal securities laws.
These forward-looking statements reflect the Group's current
expectations concerning future events and actual results may differ
materially from current expectations or historical results.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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