IAA, Inc., a leading global digital marketplace connecting vehicle buyers and sellers, announced that the UK’s Competition and Markets Authority (“CMA”) has cleared IAA’s acquisition of SYNETIQ Ltd. (“SYNETIQ”), a leading integrated salvage and vehicle dismantling company in the United Kingdom, for £225 million. The businesses were previously required to be held separate under an initial enforcement order (IEO) issued by the CMA on November 5, 2021. However, the IEO was revoked by the CMA on February 10, 2022, and the announcement today paves the way for full integration of the two businesses. The CMA approved the transaction without any conditions. All regulatory approvals and consents are now secured.
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On October 26, 2021, IAA, Inc. acquired the stock of SYNETIQ through its indirect wholly owned subsidiary IAA International Holdings Limited. SYNETIQ provides salvage auction services for insurance companies, accident management companies, and other public and private sellers. The company is an environmental leader and sells parts from salvage vehicles which re-enter the automotive supply chain. SYNETIQ has 15 locations and approximately 500 employees throughout the United Kingdom.
In accordance with the terms of the agreement to acquire SYNETIQ, IAA will be paying to SYNETIQ the remaining payment of $54.0 million (£39.2 million) that was being held in an escrow account pending receipt of CMA regulatory approval.
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John Kett, Chief Executive Officer and President of IAA, said, “We are thrilled to receive regulatory approval from the CMA and officially welcome the SYNETIQ team to IAA. This transaction will significantly expand IAA’s business and services in the United Kingdom, and we are excited to work together to meet our customers’ growing needs. SYNETIQ’s focus and expertise on green parts will be an excellent addition to our focus on sustainability in the UK and around the world. We look forward to moving forward with the integration process.”
Tom Rumboll, Chief Executive Officer of SYNETIQ, said, “We are proud to join IAA, a leading global digital marketplace with a significant international footprint. I am also very excited to work with Managing Director Steve Hankins and his entire IAA team in the UK. As a combined entity, our diversified portfolios and proven management teams will be tremendous assets as we work to make the vehicle salvage industry more sustainable. We are grateful to IAA for this opportunity and are excited about the long-term opportunities of our shared business.”
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