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Stream sells NZ insurance claims unit

NZ Newswire logoNZ Newswire 27/01/2017 Sophie Boot

Australian insurance claims management company Stream Group has sold its New Zealand subsidiary Symetri to multinational claims manager Gallagher Bassett for up to $25 million.

Gallagher Bassett will pay $7m upfront for Symetri's operating business and most of its assets, with earn-outs capped at $18m based on profit through to December 2018.

Insurance services firm Stream will keep its subsidiary Symetri Technology and through that, the intellectual property used in the Symetri claims management business, and will license that IP to Gallagher Bassett.

ASX-listed Stream entered voluntary administration in December 2015 after issues with its key client, insurer RACQ, and was put into liquidation in April 2016, selling its UK subsidiary at that time.

The New Zealand subsidiary was its largest and most profitable division, having always operated independently, meaning the group was cash flow positive once it exited its UK and Australian businesses.

The sale will require shareholder approval and will be voted on at a general meeting on March 1.

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