Corporate team provides acquisition advice

We are pleased to confirm completion of the acquisition by the US based Solera Holdings, Inc., of HPI Limited , for GBP £78.3 million (USD $117.4 million).

HPI Limited is the leading UK provider of used vehicle validation services and operator of the eponymous 'HPI check'. HPI was previously owned by RAC a member of the Aviva Group, the largest insurance provider in the UK.

Our Corporate team were instructed by the buyer, a subsidiary of Solera Holdings Inc. Solera is the leading global provider of software and services to the automobile insurance claims processing industry and is active in over 50 countries across six continents. We have a longstanding relationship with Audatex, Solera’s UK subsidiary.

The transaction, which was formally completed on 19^th December 2008, was the result of a competitive auction process generating interest among a number of bidders, including large corporates. The deal consideration consisted of both cash and subordinated notes, as well as a provisional additional sum based on future financial performance.

Johnathan Rees, Partner in Morgan Cole’s Corporate team, comments:

"We are delighted to have been able to assist Solera in its completion of the acquisition of HPI. These are exciting times for the Solera Group and the transaction is a significant step in its strategic development. The transaction involved the deployment of a significant and dedicated resource from Morgan Cole over a period of time and required considerable input from a variety of our specialists."

The HPI deal was completed against the backdrop of a very challenging environment for the M&A sector and comes at a time when many similar sized deals are being delayed or cancelled amid the liquidity crisis in the debt finance markets. 

Johnathan Rees continues:

"The transaction represents a significant achievement in the current climate and was a good example of the importance of project management in executing cross-border corporate deals"

Solera’s General Counsel, Jason Brady, commented:

"We enjoy our relationship with Morgan Cole. Johnathan and his team provided thoughtful counsel and professionalism throughout the transaction process, helping us structure and complete an important strategic transaction."

Solera Holdings, Inc
Full Press Release: 19 December (US)