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Roadzen Signs Definitive Agreement to Acquire a Leading European MGA Focused on Short-Term Car Rental Insurance

RDZN
  • Roadzen Inc. signed a definitive agreement to acquire a leading European technology-driven managing general agent (MGA) specializing in short-term car rental insurance.
  • The acquisition is executed by Roadzen's India subsidiary, Roadzen Technologies Limited, which is 92% owned by Roadzen Inc.
  • Total consideration is approximately $15 million, with 50% payable at closing and the remaining 50% structured as a three-year earn-out contingent on milestones.
  • Sellers may elect to receive equity in Roadzen India based on a valuation of approximately $280 million, or cash, ensuring the transaction is not dilutive to Roadzen's Nasdaq shareholders.
  • The acquired business writes approximately 800,000 policies annually with expected revenue of $18–20 million and EBITDA of $1.6–2 million for the current fiscal year.
  • The target operates as a capital-light MGA model with no debt, positive free cash flow, a lean team of around 20 people, and no direct underwriting risk taken on.
  • The business is regulated in the European Union and the United Kingdom, backed by multi-year A-rated underwriting capacity, and distributes via embedded API integrations with major rental partners.
  • Roadzen will combine over a decade of the target's proprietary short-trip pricing data with its own AI to enable real-time underwriting, dynamic pricing, and automated computer-vision-led claims.
  • The deal allows Roadzen to offer its AI-powered insurance product directly to its existing global car rental fleet clients while strengthening pre- and post-trip vehicle condition assessments.
  • The acquired entity operates in a $27 billion global car rental insurance market growing at a 6.8% CAGR, driven by increased vehicle utilization and the need for technology-driven fraud protection.
  • Closing is anticipated in the early fourth quarter of the calendar year, with the specific name of the acquired business to be disclosed upon completion.