Charles Taylor purchases insurance technology consultancy Inworx

The insurance services provider Charles Taylor InsureTech announced earlier this week their intention to purchase Inworx, an insurance technology consulting firm. Inworx operates in 15 countries in Latin America and has offices in Argentina, Mexico, Peru and the US. 

The acquisition of the company will make Charles Taylor InsureTech one of the biggest technology consultancies providing business change advice and implementation providers to clients. The deal will see Inworx’s current 270 professional staff members added to with a further 200 staff across the continent. 

According to sources, the deal is worth a total of $22.5 million, but could be as high as $50.5 million if including performance related deferred payments. The initial sum will consist of just under $20 million in cash payments and the rest in Charles Taylor shares. Inworx posted a profit of $3.7 million in the year to September 2017 out of a total revenue of $14.7 million.

Included in the purchase of Inworx is the company’s insurance broking software which is called InBroker. The market-leading system is used by some of Latin America’s top-tier brokers including Willis Towers Watson, Marsh, and AJ Gallagher.

Inworx’s business network across Latin America gives Charles Taylor the opportunity to expand its reach throughout the region. Both companies will benefit with Charles Taylor’s size and global reach whilst Inworx’s knowledge of local markets will be advantageous to the new duo. 

Leonardo Mato, the Chief Executive Officer at Inworx said: “Inworx is already a provider of choice to many of the world’s leading insurance brokers in Latin America and has established relationships across the regional insurance market. Becoming part of Charles Taylor InsureTech gives us the perfect platform to internationalise our portfolio and provide solutions to brokers and insurance providers on a global basis.”

The position of Latin American Managing Director will go to Charles Taylor’s Carlos Romeu. Romeu currently serves as Charles Taylor’s Client Delivery Director and will relocate from the company’s head office in London to the Latin America region. Prior to InsureTech, Romeu led multiple high-profile systems integration and BPO engagements for Atos and CSG as Director and Head of Strategy and Change.

The deal is conditional on Charles Taylor raising the capital, which it will attempt to do via the placing of over 6.7 million shares on the London Stock Exchange. As of Thursday, 3rd of May, the firm had raised over £17.6 million ($23.8 million), selling the shares at 260.00 pence. The initial placing was enacted via accelerated bookbuild run by Liberum Capital Ltd. 

Admittance for the main market of the London Stock Exchange is expected this week and shares are already up at 4.3% at 272.12 pence after the announcement. 

Charles Taylor Chief Executive David Marock said in relation to the share placing: "It will enable us to complete the acquisition of Inworx and drive forward the development of Charles Taylor InsureTech which aims to become a global insurance technology player, and has secured major, multi-year technology contracts in recent months."

"This acquisition marks another major step in delivering Charles Taylor's growth strategy. I am looking forward to welcoming the team from Inworx to the Charles Taylor family,” Marock said.

"Technology is transforming the way that insurance is underwritten and transacted globally. The acquisition of Inworx is one of the largest we have undertaken as a group. It demonstrates our commitment to growing our insurance technology capability, both as an enabler for the industry and to deliver the group's services. These support every stage of the insurance lifecycle and every aspect of the insurance operating model,” Marock continued.

Charles Taylor InsureTech is a part of Charles Taylor plc, the global network of professional services and consultancy providers for the insurance market. Charles Taylor has been active since the late 1800’s and employs just under 2,000 professionals in 28 countries worldwide.