Insurance intermediary Towergate Partnership is planning to acquire Ellis Bates Insurance Brokers, a provider of insurance and risk management solutions, for an undisclosed amount.

Terms of the deal have been agreed by both the companies and an approval from the Financial Conduct Authority is awaited, as reported by Insurance Age.

Ellis Bates group director Grant Ellis was quoted by the news agency as saying, "The broker was getting to the size where we either needed to invest or divest."

"They wanted a building in Harrogate and we decided it was better for someone to focus on that business in its entirety."

Sale of Ellis Bates Financial Solutions, which is also part of Ellis Bates group, is not included in the deal.

Towergate has made 10 acquisitions to date since the start of 2013.