Brown & Brown has agreed to acquire the parent company of Arrowhead General Insurance Agency from Spectrum Equity Investors, JMI Equity and a management equityholder group for $395m.

Arrowhead General Insurance Agency is a national insurance program manager and a managing general agent (MGA) in the property and casualty insurance industry.

The purchase price includes an additional payment of up to $5m may be made three years after closing, depending on Arrowhead’s EBITDA during the last year of that period.

Brown & Brown president and CEO Powell Brown said that the addition of Arrowhead to their Programs Division should significantly expand the breadth and depth of their insurance carrier relationships and the products and services they can offer their distribution partners.

"It is expected that this transaction will increase our total annual revenues and number of team members by approximately ten percent," Brown added.

The transaction is expected to close in January 2012 and is subject to customary closing conditions, as well as regulatory approval.