Ardonagh picks up Australian broking & MGA stable Envest in $321m deal
The Ardonagh Group has struck terms to buy an Australian insurance industry consolidator and distribution business Envest for A$482 million ($321 million).
The acquisition will include Aviso Group, a network of broking offices across five states managing some A$405 million in gross written premium, and 10 established MGAs operating both direct to consumer and intermediated.
Envest also bills itself as an investor and consolidator of “innovative, best-in-class insurance and financial services businesses” claiming to be constantly on the prowl for new M&A opportunities, starting from start-up ventures.
The combined portfolio has over 550 employees and recorded revenue of A$76.7 million for the financial year ended 30 June 2021.
Existing unit Ardonagh Australia will buy the unit which will continue to be led by Envest’s current managing director Greg Mullins. Other Australian units of Ardonagh Global Partners, Resilium Insurance Broking and Epsilon Underwriting, will continue to operate independently. The Envest board will be bolstered by Adrian Kitchin, CEO at Ethos Broking Australia and executive director of Resilium and Ardonagh Australia.
Ardonagh Global Partners CEO Des O’Connor commented: “This is a hugely complementary acquisition, aligning neatly with our Group’s footprint both globally and in the Australian market, which has grown substantially since our maiden investment in Resilium in February 2021. It provides a proven platform to accelerate our growth ambitions in the region. … We look forward to rallying the scale and experience of the wider Ardonagh Group behind them as they continue to invest in and empower the best and brightest entrepreneurial talent in the Australian market.”
Envest’s Greg Mullins said: “Today’s announcement marks the start of a new and exciting chapter for us all. In Ardonagh we have found a strategic partner supportive of our ambitions, with a shared vision to empower independent broking and underwriting businesses to grow by delivering innovative solutions and the highest levels of service. In addition, the broader management team rolls forward as meaningful shareholders in the Australian business, maintaining strong alignment with our global parent.”
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