Ardonagh Group has today agreed a deal to buy Australia's PSC Insurance Group Limited for A$6.19 in cash per PSC share.
The company said today's deal has an implied equity value of A$2.256 billion and an enterprise value of A$2.429 billion.
PSC is a diversified insurance services group which has over 40 trading brands and operations in Australia, Ireland, the UK, Hong Kong, Vietnam, New Zealand and Bermuda.
It employs 900 people and manages more than A$2.59 billion in global gross written premium.
PSC was founded in 2006 by Chairman Paul Dwyer who will join the Ardonagh senior management team upon completion of the deal and work closely with the leadership teams in Australia and Ardonagh Specialty to integrate and grow the combined businesses.
Ardonagh made its first acquisition in Australia in February 2021 with the purchase of Resilium Insurance Broking. It bought Brisbane-headquartered Envest in February 2023 and merged both businesses into the Envest platform.
Since then, Ardonagh has backed Envest to complete over 30 acquisitions, building gross written premium to more than A$2.1 billion across Australia.
Ardonagh said it intends to merge PSC's Australia and New Zealand operations with Envest to become one of Australia's largest privately owned insurance distribution platforms, placing A$3.3 billion in gross written premium annually.
Envest CEO Greg Mullins will oversee the combined operations for Australia and New Zealand.
The company added that PSC's UK operations will be merged into Ardonagh Specialty and Ardonagh Advisory, further building its position as one of the leading players in UK wholesale and retail broking.
Ardonagh Group now operates in 30 countries, with key platforms including MDS Group, a leading broker and risk management adviser across Portugal and Latin America, and Arachas, one of the largest insurance brokers in Ireland.
David Ross, CEO of The Ardonagh Group, said today's deal, which has secured the unanimous recommendation of PSC's board, is a significant milestone in the global growth of Ardonagh and underlines its strong commitment to the markets it serves.
"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. 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," he added.
Paul Dwyer, Chairman of PSC, said today's transaction recognises the quality and strength of PSC's people and business that has developed over the last 18 years.
"We believe this transaction maximises value for PSC shareholders while also providing an excellent platform for growth for PSC employees and clients," he added.
