Aviva To Buy Canada's Optiom In About £100 Mln Deal

(RTTNews) - Aviva plc (AV, AV.L), a financial services and insurance company, announced Monday its deal to acquire Canada's Optiom O2 Holdings Inc. from Novacap and other minority shareholders for around 100 million pounds or about C$170 million.

The transaction is expected to close in the first quarter of fiscal 2024, subject to customary closing conditions including regulatory approvals.

Calgary -based Optiom, which operates as a managing general agent or MGA, provides vehicle replacement insurance in Canada and offers flexible payment options to customers.

Aviva said the acquisition expands its capital-light businesses, which make up over half of its portfolio. The deal would also grow Aviva Canada's presence in a profitable segment of the Canadian insurance market.

The company said the acquisition is consistent with its capital management framework, which remains unchanged. Tracy Garrad, Chief Executive Officer of Aviva Canada, said, "The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market. We know Optiom well through our existing relationship..."