Brightside Group, an insurance broking and financial services group, has proposed to acquire E-Systems and eDevelopment for a total consideration of GBP17m.
Upon completion, GBP16m of the consideration, GBP15m relating to the acquisition of E-Systems and GBP1m relating to the acquisition of eDevelopment is payable in cash.
UK-based Brightside said ownership of software house eDevelopment will provide it with total control of the specification and timing of the development of its online distribution capability.
The entire consideration from the sale of E-Systems will be used to increase the capital base of Southern Rock Insurance Company which currently provides underwriting capacity to the group.
Brightside finance director Paul Chase-Gardener said that these technology acquisitions augment the suite of broking assets within the Brightside Group to create a fully integrated specialist insurance broking model. This represents both an earnings enhancing acquisition for shareholders and reinforces the attractions of Brightside as the preferred broking and distribution option for underwriters.