Quindell reaches agreement in principle to acquire ingenie
Black box insurance brand ingenie can confirm that an option has been agreed in principle for existing shareholder Quindell Plc to fully acquire the company.
Quindell is a publically listed provider of sector leading expertise in software, consultancy and technology with key markets including insurance and telecommunications. It has a market cap of £1.6 billion and currently owns 43 percent of ingenie, having made a major investment in September 2013.
The option to acquire, agreed in principle on 21 January 2014, would see Quindell buying the remaining 57,000 of 100,000 issued ingenie shares at a maximum rate of 3721 Quindell shares to 1 ingenie share. This prospective arrangement is valid until 31 January 2015 with both parties expecting to proceed sooner, in line with ingenie’s international expansion into the North American market.
The acquisition option is affirmation of ingenie’s successful UK business model. In just over two years of operation, the brand has become the go-to choice for tens of thousands of young novice drivers who are rewarded with cheaper insurance for driving well. Despite this traditionally high-risk market, ingenie has also achieved extremely competitive loss ratio performance for its underwriting partners.
Telematics insurance systems and ingenie are at the heart of Quindell’s growth strategy in the technology sector. Consequently, future ingenie products are likely to benefit from Quindell’s next generation smartphone Apps and self-installable black boxes.
Quindell exercising its option will also allow ingenie to rapidly pursue its strategy for international growth, starting with the launch of an ingenie young driver product in Canada. Additionally, ingenie can for the first time confirm its intention to launch in the United States due to increasing demand from North American insurance partners and underwriters.
Rob Terry, founder and Chairman of Quindell commented: “We’re very pleased to have reached this option agreement in principle to acquire ingenie. They have developed a great brand and a compelling business model that aligns with our technology growth strategy. I’m also delighted that the founding members, senior management and brand ambassadors will stay with ingenie - we’re investing in people and expertise as well as products and technology. With this team, we look forward to replicating ingenie’s success internationally.”
Richard King, founder and CEO of ingenie added: “In just over two years, we’ve built ingenie into a leading insurance brand for young drivers and proved our telematics technology and business model. It’s now the right time to look at an investment from the right partner, as we seek to internationalise the business. There’s no doubt that Quindell is ideally suited to increase ingenie’s rate of growth in the UK and drive the global expansion of the brand. The existing management team including myself, Chairman Steve Broughton and Chief Operating Officer Chris McKee, will remain in place to oversee this exciting next step.”
Gary Lineker, ingenie ambassador and shareholder, said: “I’ve been an investor and ambassador for ingenie from day one. From the first time I heard about it, black box insurance always seemed like a great idea. My boys use the system and it’s made them think more about their driving while giving me peace of mind knowing they’re not being reckless on the road. I’m delighted that the company is growing and I’ll continue to promote young driver road safety alongside them. I look forward to continuing working with ingenie and increasing my Quindell shareholding once this acquisition takes place.”
ingenie is an innovative new way of insuring young drivers. We exclusively insure 17 to 25 year olds who often struggle to find affordable premiums elsewhere. Our policyholders join a community of young drivers who benefit from ingenie black box telematics technology that constantly assesses their driving performance.
We build a picture of a driver's individual style, awareness and safety on the road, rewarding those who drive well with cheaper insurance premiums and helping those who need improvement become safer.
ingenie's efforts to improve road safety have been recognised with a Prince Michael International Road Safety Award for 2013.
Established in late 2011, ingenie offers a disruptive, fresh way of providing car insurance to young people and has quickly become a powerful digital brand in its own right.
The company counts footballer turned broadcaster Gary Lineker among its high-profile investors and ambassadors. Williams F1 is a key partner assisting in the development of telematics, high-profile brand promotion and road safety. The company is also backed by leading figures from UK business, including Sir Martin Broughton, Chairman of British Airways.Press contact
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