Software supplier The Innovation Group (TIG) has confirmed its plans to sell its e-business, MotorCare, to France's Groupama for £4m, as alerted by Insurancetimes.co.uk yesterday.
Under deal Groupama will retain the right to use the Motorcare trademark in France for the next two and a half years.
TiG will undertake a non-competition agreement in the French market for equivalent services, for the same period.
Group chief executive Rob Terry said: "This was a compelling deal for TiG's shareholders. The board assessed Groupama's approach from a perspective of creating shareholder value.
"This was the key driver for accepting this unsolicited, but attractive, offer at a multiple of more than 80 times the historic price earnings ratio of the French Motorcare business, or 25 times the net asset value.
"These terms highlight the significant value of our managed service operations which are still enjoying growth in core major markets.
"The French operation represented less than 1% of total revenue and less than 5% of our total e-managed services revenues of approximately £20m during 2002."
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