Randall & Quilter acquires Accredited Holding

4th Jul 2014 09:08

Randall & Quitter, a non-life insurance investor, has confirmed its subsidiary has entered into a merger with Accredited Holding for $25m to expand its underwriting franchise at Lloyd's. The transaction, which is expected to secure stable income streams, will be paid through the group's cash resources and an agreed term loan of $8.4m will be settled from its bank facility.Five-million-dollars of the consideration is expected to be paid after the audit of the 2015 accounts and is payable to the Chief Executive Officer (CEO) and Chief Operations Officer, in respect of their shareholdings. The group is anticipated to acquire 100% of the voting shares of Accredited. Randall's CEO said: "The bail business track record of Accredited Surety is exemplary and its niche characteristics fit neatly within our own underwriting philosophy. "Accredited will be the first insurer acquired by the group with an 'A' rating from a major rating agency and we believe that there are a number of exciting opportunities which stem from that."As of 09:42 the share price had risen 4.21% to 160p.WS