The Innovation Group (TiG) is set to buy multi-national specialist accident management group Motorcare for £37m.

TiG plans to finalise its purchase of Motorcare's Dutch parent company Tamlura by the end of next month, subject to normal regulatory review.

Motorcare chairman Clive Vlotman will join the TiG board as a non-executive director and no senior Motorcare managers are expected to lose their jobs.

TiG chief executive Rob Terry said it was a mutually beneficial move.

"Motorcare's client base includes 27 mid-tier insurers and a number of blue chip European insurance companies, which will add to our already considerable influence in the insurance sector," he said.

Since 1993 Motorcare has worked on behalf of approved body repair shops to offer wholesale services to the motor insurance industry. It has bases in the UK, France, Germany, South Africa and Australia.

TiG will use Motorcare's established set-up to accelerate the development of its own international infrastructure. It plans to increase Motorcare's revenue significantly by using the influence of TiG's existing clients, who earned 40% of all gross premiums in the UK insurance market last year.