Pittsburgh Glass Works (PGW) plans to sell its Insurance and Services Division (I&S), which includes LYNX Services, GTS and Glaxis, along with other information technology services to Solera Holdings (NYSE SLH) of Westlake, TX.
Solera will purchase 100% of the operating entities and other assets that comprise I&S’ business for approximately $280 million. The entire purchase price will be paid in cash. For the twelve months ended March 31, 2014, I&S’ revenue and adjusted EBITDA were $58.8 million and $19.7 million, respectively, according to a release by Solera.
“The structure of the Acquisition will result in a 15-year tax benefit to Solera with an estimated present value of approximately $69 million. After adjusting for the estimated value of the tax benefit, the purchase price represents a multiple of 10.7x I&S’ adjusted EBITDA.”
Solera provides software and services to the automobile insurance claims processing and other decision support industries. Solera is active in over 65 countries across six continents. The Solera companies include: Audatex in the United States, Canada, and in more than 45 additional countries; Informex in Belgium and Greece; Sidexa in France; ABZ and Market Scan in the Netherlands; HPI and CarWeb in the United Kingdom; Hollander serving the North American recycling market; AUTOonline providing salvage disposition in a number of European and Latin American countries; among others. The company offer some products that compete with Mitchell International.
Solera president Tony Aquila served as president of Mitchell International in the early 2000s before founding Solera.
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For a recent profile of Tony Aquila, click here