Insurance products group agrees £5.1m deal to dispose of ‘non-core’ business
Leeds-headquartered CPP Group, which provides assistance and insurance products, says it will dispose of its majority interest in Globiva Services Private Ltd for about £5.1m.
CPP explains Globiva is not part of its core operations, with the disposal forming part of a strategy to transform the group into an InsurTech business led by travel insurance company Blink Parametric.
Currently, CPP holds a 51% majority interest in Globiva, a business processes management company incorporated in India.
The other 49% of the shares is beneficially owned by the three founders of Globiva – Navneet Gupta, Vikram Singh Nathawat, and Ashish Goyal, who continue to manage the business.
For the 2022 financial year, Globiva contributed EBITDA of £2.4m to CPP Group’s overall EBITDA from continuing operations of £6.9m, though the group’s shareholders only ultimately benefit from 51% of Globiva’s results. As of 30 June 2023, Globiva had net assets of £3.6m.
Simon Pyper, CPP Group CEO, said: “The agreement we have reached with Globiva is consistent with our stated strategy and provides a positive outcome for both parties.
“This is another forward step as we simplify the group and transform to an InsurTech business.”
The sale and transfer of ownership of Globiva will be conducted over a three-year period, concluding in the first quarter of 2027.
Cash, subject to any EBITDA performance adjustment, will be received by CPP as follows: approximately £1.2m in 2024; £1.3m in 2025; £1.2m in 2026; and £1.4m in 2027.