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- Steadfast Group (ASX:SDF) moves into the US insurance market by acquiring ISU Group
- ISU Group is one of the US’s largest privately owned independent insurance agency networks
- It comes at an acquisition price of US$55 million (A$86 million)
- The ISU purchase is consistent with SDF’s successful acquisition strategy
- SDF shares are up 0.73 per cent, trading at $5.53 at 10:52 AEDT
Steadfast Group (ASX:SDF) has expanded into the US insurance market by acquiring ISU Group.
ISU Group is considered one of the US’s largest privately owned independent insurance agency networks.
The purchase comes at an acquisition price of US$55 million (A$86 million), funded through SDF’s existing corporate debt facilities and free cash flow.
On top of this, the company announced it expects to be EPS accretive from the date of the acquisition.
SDF Managing Director and CEO Robert Kelly said that the move into the US market was in the works for some time.
“Following numerous discussions and presentations to US intermediaries and insurance carriers, Steadfast has identified significant opportunities to deliver its unique business model to the US insurance market,” he said.
“We are excited to do this through our acquisition of ISU, given their cultural alignment with Steadfast, [an] established and trusted brand and experienced management team.
“We look forward to working with the ISU team to deliver further value to ISU through implementing, where appropriate, Steadfast business and insurance solutions to support ISU members and their clients.”
The company reported that the ISU purchase is consistent with its successful acquisition strategy.
SDF shares were up 0.73 per cent, trading at $5.53 at 10:52 AEDT.
