Towergate Partnership, an insurance brokerage company, has made a cash offer to acquire the entire issued and to be issued share capital of Broker Network Holdings, an independent commercial insurance broker, for approximately GBP95 million.
Towergate has received irrevocable undertakings to accept or procure the acceptance of the offer in respect of a total of 8,499,420 Broker Network Shares representing approximately 55.2% of the existing issued share capital of Broker Network.
Peter Cullum, executive chairman of Towergate, said: This is a deal that makes great sense for employees, brokers and customers alike of Broker Network – our two organizations complement each other perfectly. We also share the same enthusiasm for how Broker Network could flourish under our ownership and continue to be run as a first class business for its broker members. Grant Ellis’s proposed position as the chairman of the network division of Towergate demonstrates our commitment to offering the leading UK network proposition.
Grant Ellis, CEO of Broker Network, added: The Broker Network board feels that the offer made by Towergate is in the best interests of the Broker Network Shareholders and indeed in the best interests of the Broker Network business, its network members and its people too. Towergate is a major presence in the UK insurance market and joining forces with them presents Broker Network and its members with further opportunities to expand and prosper, which I’m very excited about.