CPPGroup acquires insurance startup Blink for €1m plus earn-out

International assistance business CPPGroup announced the acquisition of Blink Innovation on Friday, for an initial consideration of €1m and an earn-out based on future products developed by Blink.

The AIM-traded firm said the initial sum would be paid on completion, with a total maximum earn-out based on up to 20% of defined profits generated up to a maximum of €20m in profits over the next five years.

Its board described Blink as a “unique digital assistance insurance product” for the travel market based in Cork, Ireland.

Blink is set to launch what is claimed to be the world's first real time resolution flight interruption insurance.

CPPGroup said Blink provides “insurance in the background”, which it said is a seamless experience for customers, as it solves their problem and enables them to complete their journey at no additional cost with no claims process to negotiate.

It recently partnered with Munich Re, and remained the only InsureTech start-up in the FCA's Project Innovate sandbox scheme.

Blink was founded by Paul Prendergast and Peter Bermingham, both of whom built a number of successful businesses in the past.

The product had been through beta testing and was due to launch April 2017.

“I am delighted to announce this acquisition of Blink and welcome Paul and Peter to CPP,” said CPPGroup CEO Jason Walsh.

“The acquisition marks a significant step forward for CPP in building a global product innovation capability.”

Walsh explained that Prendergast and Bermingham carried a “proven track record” in developing innovative companies, and he was “thrilled” they were joining CPP to lead its drive in creating customer-led products for global markets.

“This will ensure that we are at the cutting edge of insurance and assistance product development in the digital space.”

Paul Prendergast, CEO of Blink, added that CPP was the “natural home” for the Blink team.

“There is a great deal of technology crossover with CPP's existing customers and products and we are looking forward to working with the team to develop new insurance and assistance solutions.”