The Ardonagh Group has secured shareholder approval for its A$2.3 billion acquisition of PSC Insurance Group Limited, bringing the two companies closer to finalising the deal.
The acquisition, announced in May 2024, was endorsed by PSC’s shareholders following a vote. It is set to strengthen Ardonagh’s retail, specialty, and wholesale broking operations.
The transaction, still subject to approval by the Federal Court of Australia, is expected to close by mid-October. It aims to increase the scale of operations and improve efficiency for clients, insurers, brokers, and other stakeholders.
Commenting on the shareholder backing, The Ardonagh Group CEO David Ross said the support from PSC shareholders highlights the sound rationale in merging the two businesses.
“The PSC story and strategy mirrors our own in many ways. Like Ardonagh, this is a business built on entrepreneurial spirit and high-quality teams moving in formation with each other, and we will have much to build on together very soon,” he said.
He noted that the combined business offers opportunities for growth in Australia and globally, especially in specialty markets.
PSC chairman Paul Dwyer reflected on the company’s journey, noting its growth from a small firm to a major player in the insurance market.
“PSC was started with just five people 18 years ago. We are proud to have reached this milestone and thankful to the colleagues who have been on this remarkable journey with us as we built trust and equity in the market,” he said.
He added that the acquisition offers PSC’s shareholders, employees, and clients a strong platform for future growth.
As the acquisition proceeds, PSC has announced solid financial results for the fiscal year ending in 2024.
The company reported a 16% increase in underlying revenue, reaching A$343.6 million. Its underlying EBITDA rose by 15% to A$127.1 million, and underlying NPATA grew by 11% to A$87 million. Earnings per share increased by 8% to 24 cents.
The company’s FY24 performance also included strategic milestones such as achieving record earnings, making significant investments in start-ups, and furthering its transition to independence in insurer dealings.
PSC completed 14 acquisitions during the year, investing around A$50 million in smaller deals that were accretive to earnings.
The Scheme Implementation Deed with Ardonagh was signed in May 2024, and PSC released the Scheme Booklet to the ASX in August, providing shareholders with detailed information on the transaction. As part of the deal, PSC did not declare a dividend for FY24, as any dividend would reduce the consideration payable to shareholders under the scheme of arrangement.
