Benzinga | Oct 22, 2021 02:44PM EDT

IAA To Acquire SYNETIQ For 225M

* IAA Inc (NYSE:IAA) agreed to acquire the stock of SYNETIQ Ltd., an integrated salvage and vehicle dismantling company in the U.K., for ?225 million.

* IAA will pay ?186 million at closing, with the remaining ?39 million contingents upon receipt of the merger control approval from the U.K. Competition and Markets Authority.

* IAA, Inc. will make this acquisition through its indirect wholly-owned subsidiary IAA International Holdings Limited.

* SYNETIQ has 14 locations and approximately 500 employees throughout the U.K. It provides salvage auction services for insurance companies, accident management companies, and other public and private sellers. For the 12 months ended September 30, 2021, the business generated ~?154 million in revenue.

* IAA expects the transaction to be immediately accretive to earnings per share and to close the deal by the end of October 2021.

* IAA intends to finance the transaction via a combination of existing balance sheet cash and existing credit facilities. It held cash and cash equivalents of $282.1 million as of June 27, 2021.

* Price Action: IAA shares are trading higher by 1.33% at $59.4 on the last check Friday.