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NSN in £6.85m sale deal with Innovation

National Service Network (NSN), which claims to be the largest centrally controlled network of independent garages in the UK, has been bought by insurance services provider Innovation Group PLC for £6.85 million, including earn-out.

The acquisition gives Innovation access to NSN’s network of 800 independently owned garages and 25 major fleets and insurance customers, including contract hire and leasing companies, warranty providers and consumer groups.

It also adds vehicle repair to Innovation’s existing portfolio of pan European accident management operations, warranty administration, insurance policy and claims handling, as well as data and software solutions.

Insurer clients include Aviva, AXA Insurance, Royal Sun Alliance and Zurich UK.

Innovation chief executive Hassan Sadiq said: “The acquisition of NSN extends our services from an accident repair network to a repair and service network, providing a ‘one stop shop’ for vehicle management, servicing and repair.”

Formed in 2003, NSN set out to create a national network of garages with a central system and technical team to leverage better prices for customers.

Clients include Auto Protect, National Grid, AA Warranty and RAC Warranty.

NSN’s turnover for the financial year ending March 31 2007 was £18.8 million, with a pre and post tax loss of £1.8 million.

Innovation expects the acquisition to be earnings neutral in 2008, returning to profit in 2009.

NSN managing director Kevin Finn said: “Being part of the Innovation Group gives us financial stability and, by pooling our respective knowledge and resources, the ability to offer new, exciting and extended network management and outsourcing services to major corporate customers.”

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