Glenrand announces the strategic acquisition of Finrite

Glenrand M∙I∙B today announced the acquisition of Finrite Insurance Administrators (Pty) Limited.

Finrite specialises in end to end administration & claims fulfilment of high volume insurance products for underwriters. A key component of such administration is cellphone handset insurance and related claims that are managed through an integrated multilingual contact centre with direct point of sale link to retailers.

Rajen Govender, Head of Glenrand MIB's Business Solutions unit, comments:  "This is a significant acquisition for Glenrand.  It diversifies and reduces the cyclicality of our revenues.   It also enables us to enhance our services by deploying them as a centralised service behind distribution channels that would otherwise be inaccessible to us.  Most significantly the acquisition provides us with a great opportunity to grow this area of broking activity and ensures we remain on top of insurance market trends."

Finrite was founded in 1993. Finrite also administers comprehensive credit life (including death, disability and retrenchment) and extended product warranties catering for the retail segment customer base.

The acquisition is subject to Competition Commission approval.  The initial consideration for the acquisition is R50 million, of which R30 million is payable on the effective date and the balance over two years.  The initial consideration will be adjusted upwards upon the achievement of certain profit thresholds over a period of two years from the effective date of the acquisition.  The cumulative final purchase consideration will, however, not exceed R70 million.  The consideration will be settled in cash, financed through own cash and debt resources.

Glenrand MIB is a leading provider of insurance broking services to a broad range of Southern African and international clients.