PSC Insurance Group has bought National Franchise Insurance Brokers in a deal worth up to $1.2 million, two months after the Subiaco-based firm was placed into administration.
PSC Insurance Group has bought National Franchise Insurance Brokers and two related entities in a deal worth up to $1.2 million, two months after the Subiaco-based firm was placed into administration.
Melbourne-based PSC told the ASX today that it has agreed to make an initial payment of $200,000 to NFIB, with deferred quarterly payments over the coming year based on revenue received.
The total payment is expected to be $1.2 million.
NFIB’s services are delivered through an online platform, and the acquisition will boost PSC’s exposure to the franchise sector.
NFIB was established in 2010, and originally was owned and operated by LTM Risk Partners before operating in its own right.
The change occured in April 2016, after Mt Hawthorn-based Trident Insurance Group in joint venture with Steadfast Group bought the LTM business and established Trident Broking.
Insolvency expert Jeremy Nipps of Cor Cordis was appointed administrator of NFIB and related company Worldwide Franchise Insurance Brokers on April 28 this year.
His colleague Cliff Rocke was appointed administrator of another related entity, Affinity Business Insurance Platform, on the same day.
PSC has bought all three entities.
PSC subsidiary PSC Insurance Brokers Perth is ranked as the 17th largest insurance broking firm in WA, with 15 brokers, according to a ranking in the BNiQ Search Engine.
Separately, PSC told the ASX today it would pay $1.2 million for Gold Coast-based insurance broker R&A and $1.1 million for a 16 per cent stake in early-stage financial planning business Clover.com.au Pty Ltd.