iA Financial Corporation has announced the acquisition of Global Warranty, a group of companies that provide independent warranty services and administration in Canada’s used vehicle market.
Established in 1987, Global Warranty operates through a network of over 1,500 automotive dealerships and more than 400 authorized repair centres across the country. Based in London, Ontario, the company offers vehicle warranties and other vehicle protection products.
Commenting on the acquisition, Global Warrant president and chief executive officer Roy Neufert said that the company decided to sell because of iA Financial Group’s long history in the warranty business, which spans more than 60 years. “We believe their expertise, experience and vision for the future will serve all Global employees and iA Financial Group well,” Neufert said.
Global Warranty provides insured warranty packages and customer service. It has been accredited by the Better Business Bureau (BBB) since March 1997 and holds a BBB Accredited Business Rating of A+.
“We couldn’t be more pleased with the acquisition of Global Warranty,” said Gwen Gareau, senior vice president of iA Dealer Services and iA Auto Finance. “This will increase our presence in the used vehicle warranty market, with a longstanding operations in London, where our subsidiary Lubrico Warranty is also based.”
Meanwhile, Pierre Miron, executive vice president, chief growth officer Canadian operations at iA Financial Group, said the Global Warrant’s acquisition perfectly fits iA Dealer Services’ growth strategy.
“We have been in the vehicle warranty business for over 60 years and we believe strongly that the used car market is an important segment for growth. Future growth and synergies with Global Warranty look very promising,” Miron said.
The acquisition is effective immediately and is expected to be slightly accretive from the first year on both a core and reported basis. The impact on iA Financial Group's solvency ratio is a one percentage point decrease.
Founded in 1892, iA Financial Group is an insurance and wealth management group in Canada with operations in the US. iA Financial Group is a business name and trademark of iA Financial Corporation and Industrial Alliance Insurance and Financial Services Inc.
