DCAP Insurance and Extech Announce Strategic Alliance
6 October 1998
DCAP Insurance and Extech Announce Strategic Alliance With The Robert Plan
EAST MEADOW, N.Y.--Oct. 5, 1998--First Insurance Co. to Own Interest in Independent Agency
Extech Corporation today announced a strategic alliance between Dealers Choice Automotive Planning Inc. and its affiliates, DCAP Insurance, the largest independent retail insurance chain in the Northeast, and The Robert Plan Corporation, one of the largest insurers of assigned-risk drivers in the United States.
Under the agreement, Eagle Insurance Company, a wholly owned subsidiary of The Robert Plan, will purchase 12.6% of the common stock of Extech, following the closing of Extech's previously announced purchase of DCAP Insurance. The acquisition is expected to be completed in December of this year.
Access by The Robert Plan to an Independent Agent Network
The alliance of Eagle and DCAP will provide a substantial new outlet for automobile, business and homeowner insurance products offered by The Robert Plan's insurance subsidiaries. All 55 retail stores in the DCAP chain will sell policies issued by the insurance subsidiaries owned and operated by The Robert Plan in New York and New Jersey.
DCAP presently services nearly 100,000 policyholders in New York City, Long Island, Westchester County, New York; and New Jersey. Approximately 35,000 new insurance customers are added each year.
New Revenue Streams for DCAP and The Robert Plan
The strategic partnership between DCAP and The Robert Plan will create substantial new revenue streams for both companies, according to Robert Wallach, President and Chief Executive Officer of The Robert Plan.
"Our ability to offer competitive products through DCAP's extensive agent network represents a major growth opportunity both for DCAP and our insurance companies," Mr. Wallach said. "Eagle Insurance Company's investment in Extech is an indication of our belief in the value of this strategic alliance."
Kevin Lang, President of DCAP, stated: "We anticipate that the synergies of this partnership will produce the cash and the product portfolio that will allow us to expand DCAP's retail presence at a substantially accelerated pace."
"The combined resources of the two corporations will infuse the growth of DCAP Insurance and permit us to pursue additional strategic alliances," said Morton L. Certilman, President of Extech.
Extech is the owner and operator of the International Airport Hotel in San Juan, Puerto Rico. With the acquisition of DCAP Insurance, Extech will be making its first foray into diversified lines of business.
For more information, contact Morton Certilman at (516) 794-6300.
