McDougall Insurance Brokers, a subsidiary of Definity Financial Corporation, has completed its acquisition of Drayden Insurance.
The deal was announced earlier this year when McDougall entered a definitive agreement to buy the Alberta-based firm for $208 million.
According to a press release, the acquisition was made possible through funding from Definity, which utilized excess capital, and the issuance of shares to the selling shareholders of McDougall. These transactions have brought Definity’s ownership interest in McDougall to approximately 78%.
Definity has been actively expanding its presence over the past year with the acquisition of a majority interest in McDougall, followed by McDougall’s move for Ontario-based McFarlan Rowlands Insurance Brokers and Drayden Insurance.
Drayden handles approximately $125 million in annual premiums. It was founded in 1965 and currently employs over 170 people across eight locations in the Edmonton area.
As part of McDougall, Drayden will be managed as an independent operating unit and maintain its existing brand.
CEO Ross McDougall remarked on McDougall’s deal with Drayden back in June, calling the acquisition a “unique opportunity to expand nationally and immediately establish a leadership position in Alberta's insurance broker market.”
Definity president and CEO Rowan Saunders said the addition of Drayden will bring “immediate scale and market leading presence outside of Ontario.”
“This acquisition reinforces Definity’s commitment to build our insurance broker platform into another billion-dollar business,” Saunders said.
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