FW has advised Charles Taylor Consulting Plc (“CTC”) on two strategic acquisitions over the last few months. These include:
Its acquisition of Axiom Holdings Limited (“Axiom”) for an initial payment of £6.25million and up to a further £1.6million dependent on Axiom’s revenue for 2009. Axiom is the holding company of a group which provides insurance support services to managing agents, brokers, insurers and reinsurers principally in the Lloyd’s and London insurance markets.
CTC provides insurance services to mutual and captive insurers, commercial insurers, whether still underwriting or closed to new business, and insured shipowners, and also owns life and non-life insurance companies which are closed to new business.
CTC’s existing run-off services operation will be integrated with the Axiom business to form a new Insurance Support Services Division to sit alongside the group’s existing Management and Adjusting Divisions. Axiom’s business complements CTC’s existing operations and will immediately give CTC a stronger presence in the market for insurance support services.
Axiom was acquired on a debt-free basis and with substantial tax losses, from various institutional and individual investors, including members of Axiom’s management.
Corporate Partner Nick Sayers led the transaction and was assisted by Senior Associate Howard Taylor and lawyers in the firm’s employment, property and tax departments.
Secondly, its acquisition of ASG (Aircraft Technical Services) Limited (“ASG”), a specialist aviation asset management consultancy. ASG provides risk management, technical support and asset management services to aircraft operators, owners and financiers and their insurers. ASG’s business is complementary to CTC’s existing aviation operation and will be integrated within it. The initial consideration was £1.4m in cash. An additional £800,000 may become payable in total depending on ASG’s performance in 2009/2010/2011.
Nick Sayers and Howard Taylor also acted for CTC on this transcation.