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AUB buys Tysers for £500m

AUB Group, an Australia-based insurance brokerage network, has confirmed that it has reached an agreement to acquire wholesale brokerage Tysers from its current owner, Odyssey Investment Partners, for a sale price of 880 million Australian dollars (500 million pounds sterling).

Last month, AUB claimed it was still in talks over a possible takeover of Tysers, after reports suggested it had won a bidding war to acquire the broker.

Now the deal has been confirmed, with the purchase price implying a pro forma EBITDA of 9x for FY22, and with additional deferred consideration of up to AUD176m (£100m) payable two years after completion , subject to Tysers achieving the agreed targets. revenue growth targets with an upper limit of £220m.

Tysers is a specialist international insurance broker based in London.

AUB explained that the acquisition is in line with its strategy to meet the international investment needs of clients, capture more savings in the brokerage value chain and scale its agencies.

The acquisition will be financed by the proceeds of a AUD 350 million fundraising, a AUD 176 million (GBP 100 million) placement of AUB shares to the seller of Tysers and a new multi-currency credit facility of AUD 675 million. for delivery in H1 2023.

As part of the deal, AUB has also agreed that Australian brokerage and insurance intermediary PSC will acquire a 50% stake in Tysers UK Retail in a 50/50 joint venture following completion of the deal. ‘acquisition.

“The acquisition represents an important next step in AUB’s strategy to grow our customer offering and risk expertise. Lloyd’s is the largest insurance marketplace in the world. Tysers offers the AUB Group the ability to access a diverse range of risks and types of insurance for our clients and broker networks in Australia and New Zealand, while gaining the ability to accelerate the creation of new agencies in these markets,” said Mike Emmett of AUB Group. CEO.

“Clive Buesnel, CEO of Tysers, is a highly respected insurance executive in the Lloyds and London market, and we are delighted to welcome him and the Tysers team to the AUB family as we begin a new chapter for AUB Group and Tysers.”

Buesnel added, “AUB is the perfect partner to enable Tysers to continue our proud history and support our growth ambitions. The strategic and cultural alignment is clear, and we are excited to realize future opportunities together. We are proud of our culture and background and look forward to working collaboratively and innovatively with AUB. »

Jeff McKibben, Senior Managing Principal of Odyssey, also commented: “Tysers is a leading, high quality independent Lloyd’s Broker. We believe AUB Group will be a very good strategic partner for the company as it continues its post-COVID earnings recovery. We look forward to maintaining continued exposure to Tysers through our investment in AUB and participating in the combined group’s growth trajectory. »

Tony Robinson, CEO of PSC, further said: “We are delighted at the opportunity to partner with AUB on the proposed joint venture of the Tysers UK Retail business. This gives us the opportunity to secure 50% of a significant UK retail broker, which is in line with our strategy of growing in the UK and diversifying our insurance intermediary business. »

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