- PCS Insurance Group has completed the purchase of Carroll Insurance
- PCS says this acquisition complements both companies very well
- The company expects the CIG incremental revenue to be 3.7 million per annum
- However, PCS shares are down 2.10 per cent on the market today and are trading at $2.80 per share
PCS Insurance Group has completed the purchase of Carroll Insurance (CIG).
CIG operates in the Lloyd’s and Londons Markets and is a direct and wholesale broking business.
“CIG has 18 staff, and we expect that synergies can be realised given an increase in products and capability across the combined operation,” the company told the market.
PCS says this acquisition complements both companies very well and represents a ‘bolt-in’ with its existing Carroll Holman Insurance Brokers business in London.
The CIG business is well known to PCS, with Carroll Holman management having facilitated a management buyout of business assets in 2007 from CIG. This Carroll Holman business was acquired by PCS in June 2012.
“Peter Carroll the principal of CIG will be entering into a consultancy arrangement post-completion and joining the board of Carroll Holman,” the company added.
PCS acquired 100 per cent of CIG share capital for $6.3 million, this excludes net assets. To own 70 per cent of the consideration the company paid $4.51 million, with the final 30 per cent is dependent on the revenue after 12 months.
The company expects the CIG incremental revenue to be 3.7 million per annum. The acquisition has been fully funded from existing cash resources.
“We are delighted to welcome the CIG team to the group,” the company said.
However, PCS shares are down 2.10 per cent on the market today and are trading at $2.80 per share at 11:54 am AEDT.