AUB to acquire Lloyd's wholesale broker Tysers
AUB Group has entered into an agreement to acquire UK-based Lloyd’s wholesale broker Tysers for $880 million.
Tysers is the sixth largest wholesale broker in the Lloyd’s marketplace, writing annual gross premium of $3.6 billion.
“The acquisition represents an important next step in the AUB strategy to build out our client offering and risk expertise,” AUB CEO Mike Emmett said today.
“Tysers provides AUB Group the ability to access a diverse range of risks and insurance types for our clients and broker networks in Australia and New Zealand whilst also gaining the capability to accelerate the establishment of new agencies in these markets."
The acquisition may involve potential additional deferred consideration of up to $176 million, payable two years after deal completion, based on the achievement of revenue targets.
Separately, AUB and PSC Insurance have entered into a non-binding agreement for PSC to acquire a 50% stake in Tysers’ UK retail division as part of a 50/50 joint venture between the two firms.
PSC CEO Tony Robinson says the joint venture represents an opportunity to secure a 50% stake in a “meaningful UK retail broker” which is in line with the group’s strategy to expand in the UK and diversify its intermediary business.
AUB says it expects to complete the acquisition in the first half of next financial year, subject to regulatory approvals.
More details in our bulletin this afternoon.