ChinaGrowth North Acquisition has signed a share purchase agreement to buy UIB Group, an insurance brokerage service provider in China.

Following completion of the transaction, UIB will become a wholly owned subsidiary of ChinaGrowth North Acquisition.

The company maintained that UIB’s current management team will remain in place to run the business following consummation of the acquisition. Xuesong Song, chairman of ChinaGrowth North Acquisition, will remain on the board.

Mr Song said: We are extremely excited to announce today’s acquisition. UIB has built a strong business in China’s expanding insurance brokerage sector and is well positioned to continue its impressive growth trends.

Xiaoping Chen, chairman and CEO of UIB Group, said: UIB will pursue a multi-product growth strategy. We intend to expand our market penetration in China by cultivating new relationships as well as rolling out new, higher-value insurance brokerage products and services utilizing our established and growing distribution channel.