Towergate To Acquire Open International Group

by Stewart Douglas

Story link: Towergate To Acquire Open International Group

Towergate has today unveiled a planned acquisition of the UK’s leading insurance IT solutions provider Open International Ltd., which will see the company take its most ambitious steps yet towards expansion.

In a move set to be worth an estimated £276 million, Towergate is poised to acquire the assets and business of all the companies within the Open International Group, which includes the Countrywide Network and Open GI, the leading broking software system, amongst its holdings portfolio.

The move is designed to expand the reach of Towergate into the insurance IT service provision market, which will cement its current standing within the insurance industry and complement existing business operations at a grass roots level.

The Open Group will continue to be run in its present form, with its 300 strong staff set to retain their current roles within the present management structure. It will continue to be run as a distinct business entity from Towergate, who will control the board of the Open Group as the business integrates more closely with the current Towergate business model.

Open GI, the company’s leading all-round insurance system currently services around 40% of the market for broking and underwriting software systems in the UK, which fits well within the existing Towergate structure - at present, amongst the significant customer base Open GI has to offer.

The move will enable Towergate to benefit from the specialties of distribution and networking that the Open Group already have in place, which will ultimately see Towergate products becoming more prominent within the marketplace with a wider broker distribution channel.

The deal is expected to begin towards completion over the coming weeks, as the companies seek to cross promote services and establish a more robust working relationship within the insurance and insurance services sector as a partnership entity.