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IAA to Acquire UK Vehicle Salvage Firm Synetiq.

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Vincent

MANews-(C)2009-2021

US-based digital vehicle marketplace IAA, Inc. (NYSE: IAA) has signed an agreement to acquire the stock of UK-based integrated salvage and vehicle dismantling company Synetiq Ltd for GBP 225m (USD 309.19m), the company said.

IAA, Inc. will acquire the stock of Synetiq through its indirect wholly owned subsidiary IAA International Holdings Ltd.

Founded in 2019 from the merger of four entities, Synetiq provides salvage auction services for insurance companies, accident management companies, and other public and private sellers.

In addition, the company is a leading seller of reusable parts that are dismantled from salvage vehicles and reissued into the automotive supply chain.

Synetiq has 14 locations and approximately 500 employees throughout the United Kingdom.

The business has capabilities covering the entire salvage journey, from collection to vehicle auction or dismantling, and optimizes vehicle value through parts and material recycling.

For the 12 months ended September 30, 2021, the business generated revenue of approximately GBP 154 m.

The transaction is expected by IAA to be immediately accretive to earnings per share.

Under the terms of the agreement, IAA will pay GBP 186m at closing, with the remaining GBP 39m contingent upon receipt of the merger control approval from the UK Competition and Markets Authority.

The final consideration to be paid is subject to working capital and other adjustments. The transaction will be financed through a combination of existing balance sheet cash and existing credit...

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