PSC Insurance Group has announced a series of acquisitions to bolster its national presence.
The Perth-based firm has announced that it has acquired National Franchise Insurance Brokers (NFIB) with an initial deposit of $200,000 paid, with quarterly instalments to be paid over a year based on revenue received, bringing the total consideration to approximately $1.2m.
The firm also announced the purchase of Gold Coast-based Riley and Associates (R&A) which will integrate into the existing PSC business.
The bolt-on acquisition has a purchase price of approximately $1.2m, with $800,000 paid upfront and the balance paid on an adjustable basis after 12 months.
The firm anticipates that the combined acquisitions will have a combined EBITDA contribution of more than $500,000 on an annualised basis.
“Given PSI’s national footprint and scale, NFIB will be able to expand its client reach and sales capability and will strengthen PSI’s capability and services to franchise and affinity groups throughout Australia,” PSC said in a statement to the ASX.
The group also announced an investment of $1.1m for a 16% ownership interest in fintech firm Clover.
Clover, an early stage personal financial advisory and planning business, is an online service in the early ‘post revenue’ phase of its growth.
“The technology platform is complementary with existing general insurance online platforms within the group, being PSC Direct, Online Insurance Brokers (travel insurance) and now the NFIB platform,” the statement continued.
“The investment will enhance the group’s ability to evolve its online capability and use of technology to reach our existing and future client base.”
The three investments follow a similar spree announced in May, which saw the firm invest more than $5m in three deals, and the firm is not done yet.
“The pipeline continues to look strong, with more announcements expected in the coming months.”
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