The AA and Saga, two of the UK’s leading insurance brands are to come together to create a new company worth more than £6billion.
The merge has valued the combined Group at £6.15billion – the AA at £3.35billion and Saga at £2.8billion.
The existing shareholders in both the AA and Saga will be the investors in the new business and Saga Chief Executive Andrew Goodsell will take the helm of the new company. Tim Parker, CEO of the AA has “signalled his intention to pursue new business projects outside the AA”, once the transaction is completed.
Mr Goodsell says the new company will still allow Saga and the AA to operate as separate brands, but offer the benefit of shared expertise; “both organisations can grow and benefit from sharing expertise and systems,” he said.
“We also see great opportunities to offer Saga’s products to the AA’s 50+ members, and the AA’s products to Saga customers. This is a great deal for both brands,” continued Mr Goodsell.
“Saga has an absolute focus on understanding customers and excellence in service, and this fits very well with the AA’s relationship with its members,” he said. “In combination we can strengthen Saga’s leading position in the 50+ market, and the AA as the pre-eminent organisation for the motorist.”
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