The deal will enable Steadfast to expand its service offerings to the SME and domestic market
Arnold Bloch Leibler (ABL) has advised insurance distribution firm Insurance Brands Australia (IBA) on its sale to insurance broker network Steadfast Group.
Pursuant to the transaction, Steadfast will fully acquire IBA and its subsidiary companies for an enterprise value of $301m. Initial acquisition payment of $276m, with an additional potential earn-out fee of $25m, will be payable subject to achieving performance criteria in FY23.
Steadfast managing director and CEO Robert Kelly confirmed that the acquisition will enable the company to scale its business and expand its service offerings to the SME and domestic market.
“The combination of both businesses is complementary with exceptional strategic and cultural alignment and further strengthens our regional footprint across Australia,” Kelly said.
The deal is expected to be completed by the end of August.
Corporate partner Jason van Grieken led the ABL team on the transaction. He was assisted by senior associate Ari Bendet and lawyer Billy Sakis.
“Insurance Brands Australia is a highly successful business with an excellent growth track record,” van Grieken said. “We are thrilled to have advised IBA on this transaction with Steadfast and we congratulate all parties involved.”