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PSC buys another UK Lloyd’s broker

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PSC Insurance Group will pay £3.4 million ($6.4 million) for Carroll Insurance Group (CIG), a UK-based Lloyd’s broker that specialises in bespoke insurance solutions.

The acquisition follows the completion of the £42 million ($78.8 million) deal last month for Paragon International, a Lloyd’s broker based in London.

PSC says the latest addition to the business will contribute about £2 million ($3.8 million) in incremental revenue annually.

“CIG is a highly complementary acquisition…and we expect that synergies can be realised given an increase in products and capability across the combined operation,” PSC says in a statement.

The transaction will be settled in two stages, with the first to involve a £2.4 million ($4.5 million) cash payment when the deal is completed. The outstanding amount is “adjustable” and will be based on CIG’s revenue after 12 months.

PSC told shareholders at this month’s AGM that the business expects $58.7 million in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the current financial year.

The business achieved underlying EBITDA of $43.3 million in the past financial year.