Fleet News

Aviva sells RAC fleet business for £87m

NORWICH Union parent company Aviva has sold its RAC fleet businesses in a deal worth £87 million.

Lex Defence and RAC Software Solutions are among the companies that have been sold as part of the multi-million deal to the VT Group within its VT Defence division.

Aviva took over the businesses in March last year when it bought the RAC for £1.1 billion. Lex Transfleet Airside Solutions and Lex Emergency Services are also part of the take-over deal. Executives say it is business as usual for all customers and that staffing levels will remain the same.

Lex Defence managing director George Webb said: ‘The change in parent company will not affect our contracts with the MoD or the service we deliver to our clients. The MoD is comfortable with the situation and already has a very strong relationship with VT Group and VT Defence.’

He added: ‘We will be a core business within a company whose culture and values are similar to our own and that is committed to our markets and investing significantly in continued growth.

‘Our acquisition brings the opportunity to support that continued growth by offering fleet management services to existing VT Group clients.’

Lex Defence provides a range of services to support the vehicle fleet requirements of the British Armed Forces around the world and is responsible for more than £1 billion worth of MoD contracts.

RAC Software Solutions managing director Aidan Rowsome said: ‘We are like-minded companies and I believe it will be a very good fit.

Additionally, the acquisition will support the ongoing growth of RAC Software Solutions in the defence and civil sectors by enabling us to offer our software services to existing VT Group clients.’

Aviva executive director Patrick Snowball said: ‘These are excellent businesses, acquired as part of our purchase of RAC.However, their sale is in line with our stated strategy of focusing on our core business, which is providing insurance and related services to individual and SME customers.’

Discussions between Aviva and banking giant HBOS are ongoing to agree a ‘fair market value’ for Lex Vehicle Leasing, which may or may not lead to the sale of Aviva’s interest in the joint venture.

It gained half the UK’s biggest leasing company as part of its RAC takeover.

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