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Charles Taylor InsureTech is about to get bigger.
The Charles Taylor plc subsidiary is snapping up insurance-focused technology consultancy and software provider Inworx to broaden not only its capabilities but also its global presence. The acquisition will see 270 technology staff, as well as multiple international and local insurance market clients in 15 Latin American countries, added to Charles Taylor InsureTech.
Acquiring Inworx – for total consideration capped at US$50.5 million – also means Charles Taylor InsureTech will be getting its hands on the insurance broking software called InBroker, which the British buyer said is used by the likes of Willis Towers Watson and Marsh in Latin America.
Inworx will retain its current senior management team while Charles Taylor InsureTech client delivery director Carlos Romeu will be relocating to serve as managing director of Charles Taylor InsureTech, Latin America.
“This acquisition marks another major step in delivering Charles Taylor’s growth strategy,” said Charles Taylor group chief executive David Marock. “I am looking forward to welcoming the team from Inworx to the Charles Taylor family.
“Technology is transforming the way that insurance is underwritten and transacted globally. The acquisition of Inworx is one of the largest we have undertaken as a group. It demonstrates our commitment to growing our insurance technology capability, both as an enabler for the industry and to deliver the group’s services.”
Meanwhile Charles Taylor has announced the placing of over 6.7 million shares, proceeds of which will be used to fund the acquisition.
“The initial consideration payable at closing of the acquisition will comprise US$19.0 million in cash and US$3.5 million in new ordinary shares of the company,” it said in a regulatory filing. “The net proceeds of the placing will be used to finance the cash component of the initial consideration for the acquisition.”
Deferred consideration will be paid over four years.
