Solera Holdings Inc Completes Acquisition of HPI Ltd

Solera Holdings Inc (NYSE:SLH), a software and services provider to the automobile insurance claims processing industry, disclosed on 19 December that the company has acquired HPI Ltd, the UK provider of used vehicle validation services, from insurance provider Aviva plc of the UK, improving its product and service offering to UK.

Audatex, Solera's subsidiary, and Aviva have been partners internationally for over a decade. Audatex is a provider of claims solutions and was Aviva's claims management technology partner, providing a suite of services for customers within the auto and property claims segments.

The company paid HPI around USD117.4m, comprising of around USD100.5m in cash and a subordinated note for around USD16.9m that carries an annual rate of interest of 8.0%, due and payable in full on 31 December 2011, subject to certain restrictions in Solera's Amended and Restated First Lien Credit and Guaranty Agreement. Aviva should earn around USD7.2m in cash if HPI achieves certain financial performance measures in Calendar Years 2009, 2010 and 2011 after the acquisition closes.

The company, post payment of the cash amount, at closing had around USD150m cash on its balance sheet and no outstanding amounts under the Senior Secured Revolving Credit Facility portion of its Amended and Restated First Lien Credit and Guaranty Agreement.

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