Join our daily newsletter At The Bell to receive exclusive market insights
- PSC Insurance Group (PSI) has further expanded its footprint in the United Kingdom with the acquisition of Absolute Insurance Brokers
- The company acquired 100 per cent of Absolute Insurance and its assets for a total of £8.51 million (approximately $15.5 million)
- 75 per cent of this is payable when the transaction is complete and will be paid out cash and shares, while the company will fork out the remaining balance over the next two years
- The acquisition follows the recent completion of a separate deal, in which the company increased its interest in Turner Financial Services — also based in the U.K. — to 100 per cent
- PSC Insurance Group is up 0.34 per cent in early trade, with shares priced at $2.91
PSC Insurance Group (PSI) has further expanded its footprint in the United Kingdom with the acquisition of Absolute Insurance Brokers.
Located in Croydon, South London, Absolute Insurance has been in operation since 2009, offering risk management and insurance solutions primarily to businesses and other commercial clients.
As consideration for the deal, PSC Insurance paid £8.51 million (approximately $15.5 million) for 100 per cent of Absolute Insurance and its associated assets.
75 per cent of this amount, roughly £6.38 million (approximately $11.67 million), is payable upon closing the transaction, with the remaining 25 per cent to be paid in equal instalments on the first and second anniversaries of the deal.
Of this initial 75 per cent, 80 per cent will be payable in a £5.11 million (around $9.35 million) cash payment, while 20 per cent will be satisfied through the issuance of PSC Insurance shares.
According to yesterday’s announcement, the acquisition was funded through a combination of existing cash reserves and a U.K. debt facility, and is expected to generate an initial increase of £1 million (approximately $1.825 million) in annualised earnings before interest, taxes, depreciation and amortisation (EBITDA).
The purchase of Absolute Insurance follows the recent completion of a separate deal, in which PSC Insurance increased its ownership of Turner Financial Services, which is also based in the U.K., to 100 per cent.
PSC Insurance says both acquisitions represent a strong performance under the company’s strategy to expand its retail broking business across the U.K.
“The immediate increase in scale will assist client outcomes with insurers, enhance our ability to improve margins through economies of scale in back office functions and provide opportunities for our Carroll wholesale broking operations,” the company said in a statement.
PSC Insurance Group is up 0.34 per cent in early trade, with shares priced at $2.91 at 10:44 am AEDT.
