Capita has no plans to change the brand name of BDML Connect or cut staff, after it acquired the broker from BDML Group for £26m this week.
Capita director of commercial services Dermot Joyce said the BDML management team, led by chairman Sandy Dunn, would remain and could receive a further £9m based on the performance of the ongoing intermediary business up to 31 December 2007.
Denying the later payment was over concerns of a softening market, Joyce said: "A deferred consideration is not unusual for us to do. The management team has built a sustainable and robust company and
I see no reason for that to change."
He added: "This acquisition is a coup for us. Like Capita, BDML Connect sits behind other people's brands and has built up excellent client relations and service."
BDML Connect delivers personal lines insurance products on behalf of major affinity brands such as Norwich Union and RAC.
It also includes the acquisition of Thornside, a business division within BDML Connect, which is an intermediary specialising in pet insurance sales and administration for major brands in the pet insurance market including Argos and Homebase.
Dunn said: "I am confident Capita's administrative capabilities will give us an edge in an increasingly competitive personal lines market."
BDML Connect's 430 staff will transfer to Capita and continue to work from their Portsmouth office.
BDML Group, which includes Sabre Insurance, will change its name to Binomial Group.
