Capita Group has today acquired CMGL from Sovereign Capital Partners LLP for...
Capita Group has today acquired CMGL from Sovereign Capital Partners for a consideration of £32m.
CMGL, a provider of outsourced claims and insurance management services employs more than 440 staff based in London, Cheltenham, Birmingham and overseas. The acquisition will build on Capita Insurance Service's existing London Markets capability.
CMGL's consolidated audited accounts for the year ended 31 December 2005, recorded an annual turnover of £41.49m and operating profit of £1.23m. As at 31 December 2005 CMGL had consolidated audited net assets of £12.05m.
Commenting on the deal, Paul Pindar, Capita chief executive, said: "[CMGL's] acquisition will allow us to offer our
customers complete end-to-end services in both the live and run-off markets. Building this sort of capability is particularly important given the challenges set out in the London market reform as well as the cross market desire to
introduce truly world class business processes.
He added: "We intend to merge CMGL with our existing London Market operations, which will create significant economies of scale and will help to ensure that London remains at the heart of the world's insurance industry."
Jerry McArthur, managing director of CMGL said "We welcome this deal and see it as a marriage of two very complementary businesses. Being an integral part of a
FTSE100 company allows us to offer a wider portfolio of bespoke services and solutions.
"It also fundamentally enhances our capacity to support the London Market and all our clients with large scale business transformation. The bringing together of two well-established businesses provides our staff with exciting opportunities to grow their skills and careers over the long term."
