BY Fraser Tennant
In a move that will see the UK-based insurance distribution platform expand its footprint in the region, Ardonagh Group is to acquire Australia's PSC Insurance in a transaction valued at A$2.3bn.
Under the terms of the agreement, Ardonagh will acquire all of the issued ordinary shares in PSC for A$6.19 in cash per PSC share. The acquisition has received the unanimous recommendation of the PSC board of directors.
Ardonagh stated that it will fund 50 percent of the deal from existing shareholders Madison Dearborn Partners and HPS Investment Partners and the rest from existing and new debt.
One of the world’s largest independent insurance distribution platforms and a top 20 global broker, Ardonagh has a combined workforce of over 10,000 people and a network spanning 200-plus locations in more than 30 countries.
Ardonagh intends to merge PSC’s Australia and New Zealand operations with Envest Pty Ltd, an entity it acquired in February 2023. The combined unit will become one of Australia’s largest privately owned insurance distribution platforms.
“This acquisition is a significant milestone in the global growth of Ardonagh and underlines our strong commitment to the markets we serve,” said David Ross, chief executive of Ardonagh. “Ardonagh has been assembled as a bastion of independence and scale, aligning high calibre businesses and management teams around quality advice for clients and entrepreneurial connectivity within the Group.”
In addition, PSC’s UK operations will be merged into Ardonagh Specialty and Ardonagh Advisory, further building the group’s position as one of the leading players in UK wholesale and retail broking.
“This transaction recognises the quality and strength of PSC’s people and business that has developed over the last 18 years,” said Paul Dwyer, chairman of PSC. “We believe this transaction maximises value for PSC shareholders while also providing an excellent platform for growth for PSC employees and our clients.”
The transaction, which is subject to customary regulatory approvals, is expected to be implemented in late 2024.
Mr Ross concluded: “PSC’s journey and values align with our own and its portfolio of highly complementary businesses provides an abundance of opportunity to strengthen our positions in Australia, wholesale and specialty markets.”
News: UK’s Ardonagh to buy Australia's PSC Insurance in $1.51 bln deal