Gallagher expands benefits business with key acquisition
Gallagher has acquired employee benefit and retirement consultant Finergy Solutions and its technology-based sister business Avantek.
The acquired companies are based in Brisbane and Sydney, and Gallagher expects they will grow its benefits business by about 50%.
GM Gallagher Benefit Services Australia Andrew Howse told insuranceNEWS.com.au the purchase is part of a strategy to diversify beyond traditional insurance broking.
“It diversifies our revenue streams and also helps put a fence around clients – it’s about client growth and retention,” he said.
“There will be more acquisitions like this in the not-too-distant future, providing there is a cultural fit. These guys saw the opportunity to be part of a global benefits business with access to a broader range of expertise.”
Finergy was established in 2010 to provide specialist superannuation education and advice services to employers and individuals. It has 10 staff, 50 corporate clients and 26,000 members.
Avantek develops customised financial and benefit reports for large groups of individuals, including its Super Score technology, which helps employees take a more active role in managing their super.
Finergy GM Corporate Solutions Jamie Levitt and GM Technology and Innovation Tim Woodhouse will continue operating from their current locations, under the direction of Leslie Lemenager, the head of Gallagher’s international employee benefits consulting division.
Gallagher Chairman, President and CEO Patrick Gallagher says in a statement that the two companies “will move Gallagher more prominently into the retirement services space in Australia, and their customised employee communication capabilities are a terrific complement to our offerings”.