Buy-and-build insurance BPS player Quindell Portfolio is adding to its recent telematics acquisition of IT-Freedom (see Quindell buys again, in telematics), with the purchase of PaaS/SaaS telematics player Metaskil Group Ltd.
Quindell will issue 40m new shares to acquire Metaskil in an all-share deal worth c£4.75m, or 1.6x Metaskil's current sales. The premium is based on expectations of PBT of c£632k in FY13 (21% margin based on current sales) and cash of at least £316k. However it only expects Metaskil to be slightly earnings enhancing in FY12.
Quindell is getting hold of an impressive client list from Metaskil, including BT, FSA, Vodafone, Royal Mail, Thames Water, Aon and the UK’s largest telematics insurer insurethebox – which also happens to be Quindell’s anchor telematics client. Metaskil’s IP is its Open Square development platform, which it hosts either on a public or private cloud basis. The flagship offering is its Napier calculations and rating engine for underwriters and insurers, but it also provides an insurance administration system, document generation and distribution system and a self-service web interface.
Quindell wants to use Napier as a platform to develop new products and propositions with its insurance and affiliate clients. Quindell said it has already established a significant pipeline of joint opportunities with Metaskil in the UK, with the first proof of concept being commissioned with a top 5 UK insurer within the past week.
This seems a complementary deal for Quindell as it nits together a new set of telematics insurance solutions for UK insurers. Telematics is an emerging area will be exploring further in a forthcoming report on insurance BPS for subscribers to TechMarketView’s BusinessProcessViews research stream.