PSC Insurance Group announces double acquisition

Firm announces pair of multi-million dollar deals as it pushes into key growth market
PSC Insurance Group announces double acquisition
INSURANCE NEWS
By Jordan Lynn
21 Aug 2017
PSC Insurance Group (PSI) has announced a pair of acquisitions.

The national firm has announced that it has purchased Insurance Marketing Group of Australia (IMGA) and Medisure Indemnity Australia (MIA) as PSC moves into the healthcare industry.

The IMGA acquisition price stands at $5.7m whilst the MIA acquisition came in at $2.9m, the firm said in a note to the ASX.

PSC will pay 80% of the fee for both IMGA and MIA upfront with the remaining 20% due within 15 months, with the final instalment adjustable and dependent on revenue after 12 months.

IMGA is a Brisbane-based national insurance broking business with a specialisation in the healthcare industry and has been operating since 1999. MIA, also based in Brisbane, is a national underwriting agency which also specialises in the healthcare industry.

Paul Dwyer, managing director of PSI, said that the firm will look to provide quality products and services to the growing healthcare market.

“We believe the healthcare sector will be a growth industry over the medium and long term, and the IMGA and MIA teams have a high degree of specialist knowledge in their markets,” Dwyer said.

Mike Sullivan, managing director of IMGA and MIA, said that he will remain with the business to assist transition and integration as the firm looks to grow under its new ownership.

“The business will continue to provide exemplary service to our health care customers, furthering stronger relationships with the sector and provide opportunities to our staff,” Sullivan said.

PSI expects revenue from the deals to be approximately $3.7m with completion expected within one month.


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