iA Financial Group finalizes $720M acquisition of IAS


An acquisition in the F&I space first announced back in December came to a conclusion this week.

Officials from iA Financial Corp., the holding company of iA Financial Group, said they have finalized the acquisition of IAS Parent Holdings Inc. and its subsidiaries through a $720 million agreement announced on Dec. 4.

Based in Austin, Texas, IAS is one of the largest independent providers of solutions in the U.S. vehicle warranty market with more than 35 years of history. IAS provides a comprehensive portfolio of vehicle warranties and related software and services sold through one of the industry’s broadest and most diverse distribution networks consisting of more than 4,300 dealers in all 50 states.

“We are pleased to announce the completion of the acquisition of IAS and to welcome its high-quality management team within iA Financial Group,” iA Financial Group president and chief executive officer Denis Ricard said in a news release.

“By combining the complementary strengths of IAS and of our existing warranty business in the U.S., we will be well positioned for the growth opportunities that may arise in this highly fragmented market,” Ricard continued.

IAS president and chief executive officer Patrick Brown added, “I am proud of our entire team and their hard work and growth over the last few years.

“With the strength and resources of iA, we look forward to continuing to grow and providing the best products and services in the industry to our long-standing partners and customers,” Brown went on to say. “We’re excited for the opportunities that lie ahead as a part of the iA family and can’t wait to get to work.”

The company mentioned the $720 million purchase price, for which a currency hedge was put in place, has been funded by iA Financial Group’s excess capital. Following the closing of the acquisition and of iA Investment Counsel’s sale which is expected to close during the second quarter of 2020, iA Financial Group insisted that it will maintain a sound capital position with a pro forma solvency ratio as at March 31 of 121%, above its target range of 110 to 116%.

Meanwhile, Genstar Capital — a leading private equity firm focused on investments in targeted segments of the financial services, healthcare, industrial and software industries — shared its perspective on the transaction involving IAS, which the firm acquired nine years ago.

“IAS has been an incredibly successful long-term investment for us since our acquisition in 2011,” Genstar president and managing director Ryan Clark said in a separate news release. “We are pleased with the evolution of IAS into one of the leading automotive warranty platform businesses. 

“IAS’ leadership under our ownership, first Bob Corbin and then Patrick Brown, delivered organic growth, strategic acquisitions, additional product lines, and best-in-class technology solutions.  We want to thank Patrick, Bob and the entire IAS team for their efforts that led to this successful outcome,” Clark continued.

In that news release, Brown also added, “The benefits of our partnership with Genstar can be seen through a variety of growth metrics, including increases in our coverage volume, premiums written, elevated customer service and most importantly empowering more vehicle owners with peace of mind during their ownership period.

“We’re grateful to the Genstar team for their support and excited for the growth opportunities that lie ahead as we join the iA family,” Brown went on to say.

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