The Ardonagh Group, one of the world's largest independent insurance broking platforms, has announced that PSC Insurance Group's shareholders have voted in favour of its proposed A$2.3bn ($1.6bn) acquisition by Ardonagh.
The acquisition will strengthen the Group’s global position in the retail, specialty, and wholesale broking markets to deliver greater scale and efficiency benefits to clients, insurers, brokers, and agencies, according to a statement by Ardonagh.
Mr David Ross, CEO of Ardonagh, said, “The support from PSC shareholders highlights the sound rationale in merging these two leading businesses. The PSC story and strategy mirrors our own in many ways. Like Ardonagh, this is a business built on entrepreneurial spirit and high-quality teams moving in formation with each other, and we will have much to build on together very soon.”
The scheme of arrangement, covering the acquisition, is subject to approval by the Federal Court of Australia at a hearing scheduled for 1 October 2024. The transaction is expected to close on or about 11 October 2024. Under it, Ardonagh will acquire all of the issued ordinary shares in PSC for A$6.19 in cash per PSC share. The Scheme cash consideration represents an implied equity value of A$2.256bn and enterprise value of A$2.429bn.
PSC is a diversified insurance services group that has over 40 trading brands and operations in Australia, the United Kingdom, Ireland, Hong Kong, Vietnam, New Zealand, and Bermuda.
On 12 September, Ardonagh announced the appointment of Mr Mark Mitchell to support the expansion of its business operations in Asia. Mr Mitchell was formerly the Asia Pacific CEO of Allianz Global Corporate & Specialty and brings 35 years of industry experience, including 25 in the Asian insurance market. Based in Singapore, Mr Mitchell will work with Ardonagh’s businesses in the region, Envest, and Price Forbes, to explore opportunities to expand their retail and wholesale broking footprint and develop new MGA capabilities.