UK service plan provider EMaC has been acquired by the Innovation Group, a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries.
It is a move that both parties believe will enable EMaC to accelerate its growth particularly into Europe and South Africa where service plans growth is a significant growth opportunity.
The deal is reported to be worth up to £46 million - £36m in cash and a further £10m dependent on profit growth.
Angela Barrow, who led the MBO of the business in 2011 from the Smyth family (that run AM100 dealer Swansway Group), will continue as chief executive, said: "This latest chapter in the EMaC story is a very exciting one, which will support our aims to broaden our proposition and move into new markets.
"The EMaC brand will continue to be an active part of the UK motor retailing landscape and all of our many customers can be assured that they will continue to benefit from our distinctive service led ethos. What is certain is that this change will enable us to accelerate our development plans."
As well as new products, it is understood EMaC will look into new products, particularly in the insurance add-on market.
Andy Roberts, chief executive officer of Innovation Group, said: "Throughout the due diligence process, it became increasingly clear that there is a great fit for both of our businesses, culturally, in our shared growth aspirations and our complementary areas of expertise. Together, we are very optimistic about the future potential for EMaC within our business.”
EMaC will continue to operate from its Crewe headquarters and operate as a distinct business with the Innovation Group.
EMac works with more 20 vehicle manufacturers, motor retailers and trade bodies.
Michael Smyth sold his stake in EMaC in November 2011 to its management team, backed by a £6m private equity investment.
In February The Innovation Group bought Crashworth, manager of a motor repair network with clients including Enterprise Rent a Car and two large insurance brokers in the UK, representing more than 40 insurance brands.