IMF makes $141m Euro acquisition

IMF Bentham has struck an agreement to acquire Omni Bridgeway for up to €87.5 million ($A141 million), which will be a tie-up of two of the biggest players in the litigation funding industry.

IMF will pay $57 million upfront for the Netherlands-based company, followed by two equal instalments of $16 million worth of IMF shares to be paid over three years.

Additionally, it will outlay up to $52 million, also via shares, paid in five annual instalments based on Omni achieving performance milestones.

IMF said it would fund the acquisition via a $139 million placement and rights offer.

By the end of the 2018 financial year, Omni had $55 million of capitalised investments in its claims portfolio and over $4 billion of claim value under management.

It operates in Europe, the Middle East, North Africa, and Central Asia.

IMF managing director Andrew Saker said Omni was an ideal fit for IMF’s expansion plans.

“As one of continental Europe’s leading litigation funders, it offered unique advantages compared to other acquisition candidates that IMF Bentham considered for its European expansion,” he said.

“Those factors, combined with a strong cultural fit, made clear that merging was the right choice at the right time for both companies.”

The merged entity will have 18 offices in 10 countries across the US, Canada, Asia, Europe, Australia and the Middle East, with 145 professionals experienced in legal and recovery systems.