Group's subsidiary will pay £3.3m for online van insurance brand.
E Insurance Limited, a subsidiary of Brightside Group, has agreed to purchase the policy book and the new business and renewal rights in respect of the eVan insurance brand from Southern Rock Insurance Company Limited.
eVan is an on-line insurance brand through which insurance is sold for vans owned by individuals and small businesses. Southern Rock will continue to underwrite the insurance policies with E Insurance operating as insurance broker and charging commissions in respect thereof.
In a statement, Brightside Group said the initial consideration will be £3.3m satisfied by a cash payment on completion. In addition, there will be deferred consideration, payable in cash, following the signing of the 2009 E Insurance Limited audited accounts. The amount of deferred consideration due will depend on the 2009 results and is subject to a maximum payment of £1.5m.
The impact of this transaction on the 2009 profits after taxation of Brightside is forecast to be an increase of £0.8m. The transaction is expected to complete on 1 December 2008.
Paul Chase Gardener, chief executive & finance director of Brightside Group, said: "Brightside Group has an excellent reputation as a specialist broker for van insurance. This acquisition gives us a strong online distribution network to add to our telesales distribution and as such is a good strategic fit."