Finance and insurance supplier Cardif Pinnacle has acquired a majority shareholding in web-based provider Warranty Direct for an undisclosed sum.
The company will continue to act as a stand-alone business from its existing headquarters in Reading and will sell its warranty products separately from Cardif Pinnacle.
Warranty Direct sold 25,000 policies in 2007, and expects a “significant uplift” in 2008, said a spokesman.
Neither party would comment on the value nor whether there were any further acquisitions planned until the deal is finalised.
However, AM understands Cardif Pinnacle is considering other opportunities for expansion.
An official statement of future plans is expected to follow shortly.
Paul Glen, chief executive of Cardif Pinnacle, said: “The acquisition of Warranty Direct will significantly improve the service and product proposition we can offer to our dealer customers and direct to consumers.
“Our ability to accelerate the expansion of our warranty business is significantly enhanced by this acquisition.”
Duncan McClure Fisher, managing director of Warranty Direct, added: “I am convinced that Cardif Pinnacle’s dealer and underwriting knowledge will complement Warranty Dir-ect’s system and service capability.
“I’m sure that we will create benefits and rewards for our staff, our partners, and most important of all, our customers.”