Posts Tagged ‘Acquisition’
Accelrys Acquires VelQuest Corporation for $35 Million in Cash
January 4, 2012
SAN DIEGO, Jan 03, 2012 (BUSINESS WIRE) –
Accelrys, Inc.
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, a leading scientific enterprise research
and development software and services company, today announced that it
has acquired privately-held VelQuest Corporation for $35 million in an
all-cash transaction. VelQuest is the leader in paperless lab execution
systems supporting current Good Manufacturing Practices (cGMP) for
FDA-regulated industries including pharmaceuticals and biotechnology
organizations. Accelrys’ acquisition of VelQuest extends Accelrys’
software portfolio into the downstream pharmaceutical development
Quality Assurance and Quality Control (QA/QC) space, offering
significant productivity improvements, faster cycle times, lower
operational costs and reduced compliance risks for regulated life
sciences organizations.
All key members of the VelQuest management team have been retained, and
VelQuest’s Ken Rapp, along with his team, will continue to lead
Accelrys’ efforts in paperless analytical and quality operations for the
life sciences.
“With the acquisition of VelQuest, Accelrys continues to execute on its
strategy of providing a broad, flexible solution set for customers that
depend on scientific innovation to bring new products from lab to market
more quickly and efficiently,” said Accelrys President and Chief
Executive Officer Max Carnecchia. “VelQuest’s strong products and proven
domain expertise in compliance-intensive laboratory operations expand
our ability to meet our life sciences customers’ critical needs in late
stage development, quality control and production.”
VelQuest’s Procedure Execution Management products (SmartLab(TM),
SmartBatch(TM) and gmpLIMS(TM)) extend Accelrys’ reach beyond Research into
the QA/QC phases of product development, speeding time to innovation
with up to ten times reduction in compliance risk. VelQuest systems have
been designed for analysts, reviewers and supervisors to manage the
entire process of executing laboratory test procedures in a paperless
environment while maintaining cGMP compliance requirements.
In addition to complementing Accelrys Pipeline Pilot and Symyx Notebook
by Accelrys, the VelQuest systems significantly reduce resources needed
for paperless analytical and quality operations, including analyst data
acquisition and documentation, data review, supervisor approval, QA
investigations, audits and releases. Some integration has already taken
place between the VelQuest offerings and existing Accelrys solutions,
opening the door to further synergies and downstream opportunities as a
result of this acquisition. The acquisition also creates the ability to
take VelQuest solutions beyond life sciences by leveraging Accelrys’
existing market presence and relationships in other industries.
“Joining forces with Accelrys is a real win for the many life sciences
organizations we serve,” said Ken Rapp, president and chief executive
officer of VelQuest Corporation. “As part of a company of Accelrys’ size
and scale, we are in a better position to serve the data management
needs of our customers. VelQuest will take advantage of an increased
investment in product development and a customer support and deployment
organization that is well suited to address the needs of large scale,
global organizations. In addition, with Accelrys’ broad market reach,
the utilization of VelQuest’s products beyond life sciences offers
significant opportunities. Most importantly, the inherent synergies
between Accelrys and VelQuest products and their critical roles in the
development to commercialization phases of the pharmaceutical RD
process offer customers a comprehensive, single-source informatics
offering along the entire lab-to-plant value chain.”
Accelrys expects the acquisition to be slightly dilutive to the full
year 2012 non-GAAP net income per share. Management will provide
detailed full year 2012 guidance when it announces fourth quarter 2011
financial results.
Forward-Looking Statements:
Statements contained in this press release relating to Accelrys’ or
management’s intentions, hopes, beliefs, expectations or predictions of
the future, including, but not limited to, statements relating to
the long-term benefits expected to result from the VelQuest acquisition
and the anticipated effect of the acquisition on Accelrys’ full year
2012 non-GAAP net income per share, are forward-looking statements. Such
forward-looking statements are subject to a number of risks and
uncertainties, including, but not limited to, risks that Accelrys will
not realize the expected benefits of the VelQuest acquisition due to,
among other possibilities, a lack of demand for or market acceptance
of Accelrys’ or VelQuest’s products. Additional risks and uncertainties
faced by Accelrys are contained from time to time in its filings with
the U.S. Securities and Exchange Commission, including, but not limited
to, its Transition Report on Form 10-KT for the nine month transition
period ended December 31, 2010 and its quarterly reports on Form 10-Q
and current reports on Form 8-K. Collectively, these risks and
uncertainties could cause Accelrys’ actual results to differ materially
from those projected in its forward-looking statements, and Accelrys
disclaims any intention or obligation to revise any forward-looking
statements whether as a result of new information, future events or
otherwise.
About VelQuest Corporation
VelQuest Corporation is the global leader in enterprise lab execution
and instrument data capture software systems for pharmaceutical and
medical device manufacturers. VelQuest solutions for lab information
management, lab execution, batch record execution, and electronic data
capture replace manual paper-based documentation processes, helping
manufacturers to improve efficiency and reduce GMP compliance risks in
quality and manufacturing operations. VelQuest is a privately held
company founded in 1999 and is based in Hopkinton, MA USA. For more
information, visit
www.velquest.com .
About Accelrys, Inc.
Accelrys
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-1.73%
, a leading scientific enterprise RD software and
services company, supports industries and organizations that rely on
scientific innovation to differentiate themselves. Accelrys’ Enterprise
Research Development Architecture, built on the industry-leading
Pipeline Pilot(TM) platform, provides a broad, flexible scientific solution
optimized to integrate the diversity of science, experimental processes
and information requirements across the research, development, process
scale-up and early manufacturing phases of product development. By
incorporating capabilities in applications for modeling and simulation,
enterprise lab management, workflow definition and capture, data
management and informatics, Accelrys enables scientific innovators to
access, organize, analyze and share data in unprecedented ways,
ultimately enhancing innovation, improving productivity and compliance,
reducing costs and speeding time from lab to market.
Headquartered in San Diego, Calif., Accelrys has more than 1,300
customers in the pharmaceutical, biotechnology, energy, chemicals,
aerospace, consumer packaged goods and industrial products industries
and employs approximately 150 full-time Ph.D. scientists. For more
information about Accelrys, visit
www.accelrys.com .
SOURCE: Accelrys, Inc.
Accelrys, Inc.
Michael A. Piraino
Executive Vice President
Chief Financial Officer
858-799-5200
or
Investor Relations
MKR Group
Charles Messman or Todd Kehrli
323-468-2300
accl@mkr-group.com
or
Press Inquiries
Racepoint Group
For Accelrys
Marla Kertzman, 415-694-6701
Copyright Business Wire 2012
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Newport Corporation Enters Into Agreement to Acquire ILX Lightwave Corporation
December 28, 2011
IRVINE, Calif., Dec. 28, 2011 /PRNewswire via COMTEX/ –
Newport Corporation
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today reported that it has entered into a definitive agreement to acquire ILX Lightwave Corporation (“ILX”), a market and technology leader in high-performance test and measurement solutions for laser diodes and other photonics components.
ILX, headquartered in Bozeman, Montana, expects 2011 revenues of approximately $8 million. The company is profitable, and Newport expects the acquisition to be accretive to its earnings immediately after closing. The consideration to be paid by Newport in the transaction is $9.3 million in cash, subject to adjustment based on ILX’s net assets at closing. The transaction is expected to close in January 2012.
Robert J. Phillippy, Newport’s President and Chief Executive Officer, said, “The addition of ILX, together with our recent acquisition of Ophir Optronics, will further enhance Newport’s position as the industry’s leading provider of photonics instrumentation and measurement equipment. With our expanded portfolio of products and technology, we will offer our customers solutions to the most demanding applications in both the scientific and industrial markets.”
ILX (
www.ilxlightwave.com ) offers a broad range of photonics instrumentation, including laser diode controllers and drivers, temperature controllers, current sources, optical power and wavelength meters, semiconductor laser/LED burn-in, test and characterization systems, and fiber optic sources. ILX distributes its products in North America, Europe and Asia, and its customers include Fortune 500 corporations, national research laboratories, and government and educational institutions, many of whom are already customers of Newport for other products. ILX will become a wholly owned subsidiary of Newport Corporation, and will operate as part of Newport’s Photonics and Precision Technologies Division.
Dr. Larry Johnson, ILX’s President, Chief Executive Officer and Founder, said, “I have known Newport for many years, and have great respect for the company and its management. I believe that joining Newport will provide ILX with new opportunities to increase revenues and enhance our product offerings. Newport’s expansive global sales and distribution channel will immediately increase the exposure of our products, and collaboration with Newport’s technical team will enable us to accelerate the development of a wide range of next generation photonics instrumentation.”
ABOUT NEWPORT CORPORATION
Newport Corporation (
www.newport.com ) is a leading global supplier of advanced-technology products and systems to customers in the scientific research, aerospace and defense/security, microelectronics, life and health sciences and precision industrial manufacturing markets. Newport’s innovative solutions leverage its expertise in photonics technologies, including lasers, photonics instrumentation, sub-micron positioning systems, vibration isolation, optical components and subsystems, precision automation and three-dimensional non-contact measurement equipment, to enhance the capabilities and productivity of its customers’ manufacturing, engineering and research applications. Newport is part of the Standard Poor’s SmallCap 600 Index and the Russell 2000 Index.
SAFE HARBOR STATEMENT
This news release contains forward-looking statements, including without limitation statements regarding ILX’s expected revenue in 2011, the expectation that the acquisition will be accretive to Newport’s earnings immediately after closing, and the expected timing of closing the transaction, the statements by Robert J. Phillippy and Dr. Larry Johnson regarding the expected impacts of the transaction, and other statements as to potential future events, consequences or results of the transaction. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Assumptions relating to the foregoing involve judgments and risks with respect to, among other things, Newport’s ability to generate cash from operating activities and its ability to capitalize on opportunities to utilize cash, which are difficult or impossible to predict accurately and many of which are beyond the control of Newport. Certain of these judgments and risks are discussed in more detail in Newport’s Form 10-K for the year ended January 1, 2011. Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport’s objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Newport Corporation
Copyright (C) 2011 PR Newswire. All rights reserved
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OP-Pohjola to Acquire Skandia Life Finland
December 22, 2011
OP-Pohjola Group`s central institution, OP-Pohjola Group Central Cooperative, will acquire Skandia Life Finland`s business from Skandia Life Assurance Company Ltd, a subsidiary of Old Mutual plc. The acquisition will be completed on or about 30 June 2012, provided that the required regulatory approvals can be gained within these timescales.
The acquisition will involve the transfer to OP-Pohjola of some 100,000 customers` unit-linked life and pension policies with with total assets of around 1.3 billion euros (unaudited) as of 30 September 2011.
The acquisition will require no action on Skandia Life customers` part. Following the acquisition, Skandia Life customers will benefit from OP-Pohjola`s extensive service network and have the opportunity to use a wide range of financial services and a diverse package of benefits from using OP-Pohjola as their main bank and insurer.
- We were very interested when we became aware that Skandia was intending to exit the Finnish market, as we saw this as an opportunity to expand our service proposition to Finnish customers. The acquiree`s focus on the asset management business is in line with our Group`s strategy. Moreover, this deal will bring us a number of new customers, says Jarmo Kuisma, Managing Director of OP Life Assurance Company Ltd.
- We are very pleased to have reached this agreement with OP-Pohjola as we believe it is in the best interests of our customers. Old Mutual`s decision to sell its Finnish operations is driven by its strategic priority to streamline and simplify its structure. Skandia Life Finland is a profitable operation which is expected to continue to thrive within the OP-Pohjola Group. We look forward to working with OP-Pohjola to ensure a smooth transfer of the business with minimal disruption for our customers, says Jyrki Thauvon, Skandia Life Finland`s appointed head agent.
For more information, please contact
Jarmo Kuisma, Managing Director, OP Life Assurance Company Ltd, tel. +358 (0)10 252 7891
Karri Alameri, Chief Investment Officer, OP Life Assurance Company Ltd, tel. +358 (0)10 252 8384
About OP-Pohjola Group
OP-Pohjola Group is Finland`s leading financial services group providing a unique range of banking, investment and insurance services. The Group has the mission of promoting the sustainable prosperity, well-being and security of its owner-members, customers and operating regions through its local presence. Its objective is to offer the best and most versatile package of loyal customer benefits on the market. OP-Pohjola Group consists of some 200 Group member banks and the Group`s central institution OP-Pohjola Group Central Cooperative with its subsidiaries and closely related companies, the largest of which is the listed company Pohjola Bank plc.
About Old Mutual plc
Old Mutual is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia. Old Mutual is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others.
In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £309 billion of funds under management from core operations, and shareholders` equity of £9.0 billion.
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Pohjola Pankki Oyj via Thomson Reuters ONE
HUG#1572945
Zurich CEO: EM share of new life policies to rise
December 12, 2011
By Sam Holmes
SINGAPORE -(MarketWatch)- Zurich Financial Services AG Chief Executive Martin Senn said Monday he expects the group’s emerging market operations to contribute 50% of its new life insurance business by 2013, above the group’s initial target of 30% for that time frame.
Senn said the group’s emerging market operations contribute about 26% of the group’s new life insurance business now, though this figure doesn’t include recently acquired businesses in Latin America and Malaysia.
“If you include that then that will take the current projections by the end of 2013 to more around 50%,” he told reporters at a briefing in Singapore.
In October, Zurich completed an acquisition of a 51% stake in the insurance operations of Banco Santander SA
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in Brazil and Argentina and in June announced the acquisition of Malaysian Assurance Alliance Bhd.
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Capsalus Corp. Upgraded to Buy Rating from Independent Advisory Opus Group Financial
December 7, 2011
ATLANTA, Nov 30, 2011 (BUSINESS WIRE) –
Capsalus Corp.
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0.00%
has received a Buy rating from Opus Group Financial, an upgrade from its
Speculative Buy recommendation issued last February. The independent
financial advisory firm based its new rating on the ongoing roll-out of
Capsalus’ expansion plans, highlighted by the acquisition of GeneWize
Life Sciences, Inc. and the development and launch of Guava Healthcare,
Inc.’s franchising business model. GeneWize
Life Sciences (
http://www.genewize.com/ )
is the first beauty and wellness network marketing DNA customized
nutritional supplements, skin care and gene modulating weight management
products; now as a franchisor, Guava
Healthcare (
http://www.guavahealthcare.com/ )
offers customized in-home, non-medical and medical staffing and services
to clients across the age spectrum.
As the report indicates, Capsalus’ acquisition of GeneWize represents
the company’s third deal in less than a year, each with early stage
enterprises in the health and wellness arena that have demonstrated the
potential to generate accelerating cash-flow and rapid margin growth.
GeneWize, which over the past three years has generated more than $25
million in revenue at a run-rate of $400,000-500,000 per month, will
enable Capsalus to report revenues in Q4 2011 for the first time in over
a year since the company set out to reposition itself.
“The GeneWize acquisition offers Capsalus an established business model
that will make an immediate contribution to its revenue line in Q4
2011,” said Opus Analyst Robert Sassoon. “It also will positively impact
Capsalus’ operating income in Q1 2012, generating gross margins of
approximately 30 percent in the absence of the overhead costs that
supported GeneWize’s former parent.”
In addition, after Guava Healthcare’s transition from an owner-operated
business to a franchising model over the course of 2011, it has begun
selling franchises in select markets in the current quarter. Opus
expects this move will also start to enhance substantially Capsalus’
revenue line in Q1 2012 if not sooner.
Concurrent with its corporate development campaign, Capsalus has
executed a major asset overhaul since early 2010, involving the
replacement of underperforming assets and reductions in operating
expenses and debt. While Opus acknowledges the probability of future
stock dilution, the prospect of relatively quick returns from new
investments should considerably improve financials and reignite interest
in the stock in the near term as well as point to significant upside
over the longer term.
View Opus’ full Capsalus
Corp. Update report (
http://www.capsalus.com/sites/default/files/uploads/Capsalus_Corp_Update_Nov_2011.pdf ).
Capsalus
Corp. (
www.capsalus.com )
partners with and acquires visionary, early stage enterprises offering
innovative consumer products and services in fast-growing segments of
the health and wellness arena. Capsalus provides companies with the
operating infrastructure, strategic pathways and financial support to
get them to the mass market quickly and efficiently to achieve rapid
revenue growth while maintaining a low operating cost structure. Its
current companies range across the consumer products, media and
technology, biotechnology and healthcare industry spectrum. Capsalus(TM) is
a trademark of Capsalus Corp.
Forward-looking Statements
This news release may contain “Forward-looking Statements” within the
meaning of Section 21E of the United States Securities Exchange Act, as
amended. All statements in this news release, other than
statements of historical fact, are forward-looking statements that
involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated
in such statements. This notice expressly qualifies all
forward-looking statements in this news.
SOURCE: Capsalus Corp.
StarToplin
Laura Feragen, 215-793-0310
lferagen@startoplin.com
Copyright Business Wire 2011
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Agilent Technologies Signs Acquisition Agreement with Accelicon Technologies …
December 2, 2011
SANTA CLARA, Calif. CUPERTINO, Calif., Dec 01, 2011 (BUSINESS WIRE) –
Agilent Technologies Inc.
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and Accelicon Technologies today
announced they have signed a definitive acquisition agreement.
Accelicon, a privately held company, provides device-level modeling and
validation software for the electronics industry.
The transaction, subject to customary closing conditions, is expected to
be completed in 60 to 90 days. Financial details were not disclosed.
The acquisition, led by Agilent’s EEsof EDA organization, will further
enhance Agilent’s leadership in semiconductor device modeling. Accurate,
verified device models are critical to reduce RD design cycles as
higher frequencies, smaller technology nodes, new materials and device
layouts call for more accurate process design kits. As a result, device
modeling continues to be one of the most critical parts of the
electronics design flow.
As the electronics industry advances, market-leading companies look for
cost and productivity improvements, facing at the same time, greater
simulation accuracy challenges due to chip complexity, fabrication
constraints and process variations. To help with this, semiconductor
foundries are constantly looking for new ways to improve and streamline
their design processes and provide standard design kits with accurate
models.
“With the addition of Accelicon’s innovative technology and talented
team, we look forward to offering our customers an even broader
portfolio of solutions to address their modeling needs,” said Mark
Pierpont, vice president and general manager of Agilent’s Software and
Modular Solutions Division. “Combining Agilent’s experience in
measurement with the modeling expertise of both companies advances our
goal of providing design teams with the industry’s most complete flow
from device modeling to simulation and measurement.”
Accelicon was founded in 2002 by noted industry veteran Dr. Xisheng
Zhang, now company president.
Accelicon sells the leading SPICE model analysis solution for model
quality assurance. Accelicon’s MQA solution offers the industry’s first
model verification platform and provides a critical link between fab and
design, comparing, documenting and validating foundry-supplied models.
Differences between technology nodes, library versions and even other
foundry models can be assessed. Accelicon also offers a modeling
platform MBP that allows modeling engineers to optimize the SPICE model
library in order to best reflect silicon data and meet the requirements
for a specific type of design.
“We are looking forward to joining our team with Agilent’s EEsof group,”
said Tim K. Smith, Accelicon’s CEO. “Leveraging Agilent’s world-class
field and engineering resources will enhance the development and support
of Accelicon’s modeling and validation platform. The combined
EEsof/Accelicon platform will be the most comprehensive and advanced
offering in the market today.”
The majority of Accelicon’s 30 employees are located in Beijing, China.
As a result of this acquisition, Agilent’s device modeling RD and
services will expand in Asia, a growing region, where many leading
foundries reside.
About Accelicon Technologies
Accelicon, based in Cupertino, Calif., is the technology leader in
device-level modeling and validation, and PDK solutions. Solutions
include MBP for device-level extraction and model generation, MQA for
device-level model validation and AMA for advanced model analysis
including layout effects. Accelicon, founded in 2002, serves more than
100 customers throughout the world. For more information, visit
www.accelicon.com .
About Agilent EEsof EDA Software
Agilent EEsof EDA is the leading supplier of electronic design
automation software for microwave, RF, high-frequency, high-speed
digital, RF system, electronic system level, circuit, 3-D
electromagnetic, physical design and device-modeling applications. More
information is available at
www.agilent.com/find/eesof .
About Agilent Technologies
Agilent Technologies Inc.
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+0.85%
is the world’s premier measurement
company and a technology leader in chemical analysis, life sciences,
electronics and communications. The company’s 18,700 employees serve
customers in more than 100 countries. Agilent had net revenues of $6.6
billion in fiscal 2011. Information about Agilent is available at
www.agilent.com .
NOTE TO EDITORS: Further technology, corporate citizenship and executive
news is available at
www.agilent.com/go/news .
SOURCE: Agilent Technologies Inc.
Agilent Technologies Inc.
Janet Smith, +1-970-679-5397 (Americas)
janet_smith@agilent.com
Sarah Calnan, +44 (118) 927 5101 (Europe)
sarah_calnan@agilent.com
Iris Ng, +852 31977979 (Asia)
iris-hw_ng@agilent.com
INVESTOR CONTACT:
Alicia Rodriguez, +1-408-345-8948
alicia_rodriguez@agilent.com
or
Accelicon
Tim K. Smith
tsmith@accelicon.com
Copyright Business Wire 2011
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Phoenix confirms private equity buy-out talks
November 21, 2011
Specialist closed life fund operator Phoenix has confirmed it is in buy-out talks with UK-based private equity house CVC Capital Partners, following the failure of a potential acquisition by Resolution.
Ron Sandler, chairman of Phoenix, said: “The board believes that Phoenix is in a strong position to deliver substantial value and has a compelling business model. Naturally, the board is obliged to evaluate any proposals that are received, and will update shareholders as appropriate.”
Press reports indicate that CVC is looking at a deal of about £1bn, while the discussion with Resolution involved an estimated price tag of £1.2bn.
Phoenix has more than six million policyholders, for whom it manages £68.5bn of closed life assurance and pension policies sold by companies including National Provident, London Life and Scottish Mutual.
Resolution said in a statement: “Resolution notes recent press speculation and confirms that, whilst it did investigate the possible acquisition of Phoenix Group Holdings with both Phoenix and its lending banks, these talks have terminated.
“Any acquisition must have a strong financial case and enhance returns to shareholders. The hurdle to executing any particular transaction is therefore high.”
The acquisition of Phoenix by Resolution would have allowed Resolution CEO Clive Cowdery to buy back his old Resolution Life business, which was acquired in 2007 by Pearl, Phoenix Group’s previous name.
Court cuts award but upholds London Life decision
November 7, 2011
In the class actions Jeffery v. London Life Insurance Co. and McKittrick v. Great-West Life Assurance Co., the appeal court reduced the award given by a trial judge to $220 million, from $390 million. The court upheld the trial judge’s decision that the acquisition of London Life by Great-West failed to comply with generally accepted accounting principles and the Insurance Companies Act.
Two former London Life actuaries, Bill Rudd and Jay Jeffery, and John McKittrick, a Great-West policyholder, sued on behalf of 1.8 million people, accusing the companies of illegally using their funds to help pay for the $2.9-billion acquisition.
The trial judge had concluded that the respondents were entitled to a “reasonable” award compensating for all foregone investment income on the $220 million together with a gross up for taxes. Accordingly, she ordered Great-West Life and London Life to pay approximately $390 million to the participating insurance policy accounts.
At issue on the appeal was the validity of what are referred to as the participating account transactions, whereby $220 million in cash from the PAR accounts was exchanged for “pre-paid expense assets,” which represented the anticipated expense savings to be realized by those accounts over a 25-year period. The $220 million was used to finance approximately 7.5 per cent of the $2.9-billion acquisition price.
Harrison Pensa LLP and Bates Barristers, the London, Ont., lawyers representing the insurance policyholders, said they are happy with the decision and “look forward to resuming the prosecution of all remaining matters to a conclusion before the trial judge in London.”
“We’re continuing to assess the court’s remedial plan and have no present view of how that will work,” says Paul Bates of Bates Barristers. “It’s very complex litigation involving the intricacies of financial services both on the requirements of legislation and the very subtle features of GAAP, and so for that reason there is a high level of complexity and we are mindful of that when we grapple with a case of this kind.”
The 76-page decision issued Nov. 4 by the appeal court provided a detailed overview of the trial judge’s approach to the case, the original trial evidence put forward, and the applicable elements of the Insurance Companies Act.
“We’re assessing the detailed and very thoughtful reasons the court has given and we’re certainly very pleased that the court has sustained a finding of a breach of the act, but the remedial analysis needs careful study,” said Bates. “It’s a complex and lengthy discussion of a new model of how to remedy the wrong, so we need time to assess that very carefully.”
The parties involved will now resume the proceedings before the trial judge to resolve all the other outstanding issues.
“Doing class proceedings requires a lot of staying power due to the complexity and the resources of the defendants and the time it takes to navigate through the court system,” said Bates. “We’re just continuing to reassess what we do and it’s clear we are to re-attend before the trial judge and complete the proceedings.”
LONDON LIFE:
November 5, 2011
SymbolPriceChangeGWO.TO21.21-0.16
Great-West Lifeco today issued the following release: Great-West Lifeco
statement on a decision released November 3 by the Court of Appeal for
Ontario
WINNIPEG , Nov. 4, 2011 /CNW/ – The Court of Appeal for Ontario has
released a decision in regard to the involvement of the participating
accounts of Great-West Lifeco subsidiaries London Life Insurance
Company and The Great-West Life Assurance Company in the financing of
the acquisition of London Insurance Group in 1997.
The Court of Appeal upheld that participating policyholders were treated
fairly and that there was no impact on their dividends. The Court of
Appeal also confirmed that it was reasonable for the participating
accounts to contribute to the acquisition in order to receive benefits.
The Court of Appeal made adjustments to the original trial judgment. The
impact is expected to be favourable to the Company’s overall financial
position. Any monies to be returned to the participating accounts will
be dealt with in accordance with the companies’ participating
policyholder dividend policies in the ordinary course of business. No
awards are to be paid out to individual class members.
The decision will have no impact on participating policy contract terms
and conditions.
Great-West Lifeco Inc. (TSX:GWO.TO – News) is an international financial services
holding company with interests in life insurance, health insurance,
retirement and investment services, asset management and reinsurance
businesses. Great-West Lifeco has operations in Canada , the United
States , Europe and Asia through The Great-West Life Assurance Company,
London Life Insurance Company, The Canada Life Assurance Company,
Great-West Life Annuity Insurance Company and Putnam Investments,
LLC. Great-West Lifeco and its companies have over $497 billion in
assets under administration, and are members of the Power Financial
Corporation group of companies.
Assets as of June 30, 2011
Posted in Life Assurance Information | 
Tags: Acquisition, Appeal, Assurance, great west life assurance, great west life assurance company, great west lifeco, Life, Life Assurance, life assurance company, life insurance company, london insurance group, london life insurance, london life insurance company
Great-West Life welcomes appeal court ruling that cuts settlement amount
November 4, 2011
TORONTO – Great-West Lifeco Inc. (TSX:GWO) says it welcomes an Ontario appeal court decision that cuts the amount it owes to policyholders who sued over the financing of an acquisition that dipped into their funds.
The Ontario court upheld some of the trial judge’s ruling last November that awarded payouts to 1.8 million Canadians to settle a class-action regarding the funding of the 1997 acquisition of London Life Insurance of London, Ont.
However, it rejected and modified other conclusions.
Particularly, the three-justice appeal panel decided unanimously to set aside the creation of two trusts to be funded with money repaid by the two insurance companies.
It ordered that $220 million plus foregone investment income be returned to the participating accounts, less an amount to be agreed by the parties and trial judge under a formula.
But the appellate judges said the companies would not be required to make a $63-million tax-related payment that had been ordered in the original decision.
The original judge ruled that Great-West breached sections of the Insurance Companies Act when it transferred money from the accounts of subsidiaries London Life and Great-West Life Assurance Co. to finance the 1997 takeover of London Insurance Group.
The appeal court upheld the judge’s finding that the transfers had violated parts of the Insurance Companies Act, but disagreed with her analysis in other areas of the law and the remedy she formulated.
Great-West Life issued a statement Friday saying the Court of Appeal’s adjustments will be favourable to the company’s overall financial position.
“Any monies to be returned to the participating accounts will be dealt with in accordance with the companies’ participating policyholder dividend policies in the ordinary course of business. No awards are to be paid out to individual class members,” the company said.
The law firm that represented the plaintiffs noted that the appeal court had confirmed use of the participating policyholder funds failed to comply with generally accepted accounting principals and the Insurance Companies Act.
“The class representatives look forward to resuming the prosecution of all remaining matters to a conclusion before the trial judge in London, Ont.”
Great-West, a subsidiary of Power Financial Corp. (TSX:PWF), is involved in life and health insurance, retirement savings, investment management and reinsurance. It operates in Canada, the United States, Europe and Asia.