U.K. tech company acquires Toronto-based iter8

Quindell Portfolio Plc, a United Kingdom-based technology provider for the insurance industry, has entered the North American insurance market by acquiring Iter8 Inc., a Toronto-based provider of software-as-a-service for property and casualty brokers and agents.

The agreed valuation of the transaction is £20.8 million, to be paid out in cash and share. As part of the deal, Iter8 has a business plan in place to deliver a run rate profit after tax of £3 million by the end of 2013, according to Quindell. At print time, one British pound was equal to $1.57.

“We are thrilled to be announcing this acquisition and to be welcoming the Iter8 team into the Quindell group,” Rob Terry, the company’s chairman and group chief executive noted in an April 18 statement.

“In addition to members of the team having worked together in 1990, the teams have worked closely over the past year to develop a pipeline of opportunities including those relating to the roll out of telematics based insurance models for the Canadian market with existing customers,” he said.

“On the basis of the considerable success being generated, we entered into a joint distribution agreement at the end of 2012. Having been able to work closely with them, we have confirmed that our two technologies are highly compatible and complementary, and we look forward to announcing new deals in this market in due course,” he added.

Iter8 is strongly positioned in North America, and in Canada in particular. The company has had more than 40 implementations for clients including Aviva, Allstate, Allianz, Chubb, RSA, Wawanesa Insurance and Zurich, and some smaller niche players.

Iter8’s product lines include personal auto and property and commercial business owners, general liability, commercial packages, farm and specialty lines.

“Having worked closely with Guidewire on a number of implementations we have been extremely impressed by Quindell’s technology capabilities and their knowledge of insurance best practice,”  Tim Scurry, co-founder and executive vice president of Iter8 commented in the April 18 statement.

“With our two technology sets now integrated and first client implementations contracted we are very confident that we can use our knowledge and standing within the North American market to excellent effect to accelerate Quindell’s technology and outsourcing growth in North America over the coming years,” he added.