PSC Insurance Group has agreed to buy London-based Lloyd’s broker Paragon International for a base consideration of £42 million ($75.2 million), the listed brokerage announced today.

The latest purchase, detailed in a market update to the Australian Securities Exchange, follows PSC’s $48 million takeover of Shepparton-based Griffiths Goodall, which was announced earlier this month.

PSC will raise $35 million from an institutional share placement to finance part of the Paragon acquisition.

Established in 1996, Paragon employs 90 staff and specialises in professional and financial lines in the Lloyd’s and London broking market.

The business last year achieved revenues of £21 million ($37.6 million) and £4.2 million ($7.5 million) in underlying earnings before interest, tax, depreciation and amortisation (EBITDA).

PSC says buying Paragon will give the business exposure to the US, the world’s biggest insurance market, and fulfils a strategic objective of the Australian brokerage group.

About 60% of Paragon’s revenues come from the US wholesale brokerage market. It is also a significant player in the UK market and its addition to the PSC family would bolster the Australian group’s existing UK presence.

“The acquisition of Paragon will greatly add to the scale and expertise within our UK businesses and we will enhance our position as a leading Lloyd’s broker providing services to US insurance brokers,” PSC MD Tony Robinson said.

“With the anticipated completion of the acquisitions of Griffiths Goodall and Paragon, the PSC Group will control in excess of $1.5 billion in premiums, making us an increasingly important participant in our key markets.”

Paragon will remain an autonomous unit of PSC post-acquisition. The deal is subject to approval from the UK Financial Conduct Authority.