Brasil Insurance Group, an insurance brokerage firm, has reached an agreement to acquire Fidelle Administradora, Corretora de Seguros e Prestadora de Serviços (Fidelle), which will be the 51st brokerage firm of the Brasil Insurance Group.
Under the terms of the deal, Brasil Insurance will own 99.96% of the shares representing the capital stock of Fidelle, while the total acquisition price is nearly BRL$17m ($7.3m), of which 40% would be paid in cash and 60% in Brasil Insurance shares.
The company said that the transaction is in line with its strategy of growth through acquisition of interest in insurance and reinsurance intermediaries in the region.
Established in 1996, Fidelle has head office in Belo Horizonte (Minas Gerais), and trades as a brokerage firm and sells nearly R$40m ($17.17m) in annual insurance premiums.
Since its IPO, Brasil Insurance invested nearly R$470m ($202m), including future earn-out estimate, in the acquisition of 11 insurance brokerage firms in 2011 (R$192m), eight in 2012 (R$170m) and five in 2013 (R$108m).
The Brasil Insurance Group markets an array of insurance products, such as health and dental plans, automobile insurance, fleet insurance, large risks, insurance guarantees, civil liability, engineering risk, transportation, among others.
The company maintains its presence in more than 10 Brazilian states through 30 offices, serving customers across the country.
Image: Brasil Insurance acquires Fidelle to boost brokerage business. Photo courtesy of adamr/ FreeDigitalPhotos.net.