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Fleet accident management company FMG has been bought by rival Redde PLC for £43.2 million.
The move gives Redde, which as founded in 1992, greater access to the fleet side of the accident management sector. Redde has bought the whole of the FMG Group outright.
The sale comes only months after executive chairman Andrew Cope led a management buyout of FMG in May of this year.
Commenting on the sale to Redde, Cope said: "We strongly believe that marrying FMG's people, knowledge and innovative capacity to Redde's long term investment and commitment to the vehicle claims industry will result in an outstanding service and technical proposition for our customers today, tomorrow and well into the future."
Martin Ward, chief executive of Redde, added: "The addition of FMG to the Redde group supports our strategic objective of growing earnings on a sustainable basis and broadening the scope of services we offer which are related to our core businesses.
FMG is a quality business and has a strong reputation in its fields of business for serving its customers well. We have worked together in the legal services arena for a number of years and this acquisition is a further step in strengthening Redde's proposition to its customers as we build on our recent successes."
Redde's existing businesses currently focus on accident management, legal services and the supply and administration of general insurance products.
The purchase of the FMG Group will broaden Redde's accident and fleet management capabilities and allow it to enter additional industry sectors. Redde will also be able to widen its appeal to the owners and managers of large vehicle fleets requiring accident management and legal services as part of a long-term customer development plan.
A stock market statement on the purchase added: "The consideration for the acquisition of all the shares and other vendor interests in the FMG Group will comprise a number of elements, the effect of which is the payment at completion of approximately £38.2 million in cash and the issue of new ordinary Redde shares with a total value of £5.0 million."
Following the acquisition, former executive chairman Andrew Cope - who is also investing substantially in the new group - will continue to advise the company on strategy as a non-executive director.
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