Ardonagh sells stake in Broker Network for £30m
UK insurance intermediary Ardonagh Group has sold its remaining stake in the Broker Network business to Nevada Investment Holdings in exchange for a cash consideration of up to £30 million.
Nevada already owns 77 percent of Broker Network and has now purchased the 19.9 percent stake from Ardonagh.
Ardonagh was formed in 2017 by the merger of Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate.
Commenting on the stake sale, Janice Deakin, deputy CEO of Ardonagh Group said: "For Ardonagh this transaction provides further resources to support our ambitions, whilst retaining a strong relationship with Broker Network through the support and guidance of our common shareholders. The Ardonagh Group companies, including our MGAs and Bishopsgate continue to provide services and products to Broker Network Members and that will remain unchanged."
“We have a clear model of majority ownership of all the businesses in the Group excluding Broker Network, which operates a model that works well for brokers needing the support of a network either as a member or an owner whilst retaining an individual level of independence and ownership of their business. We see these strategies as very complementary for our joint shareholders," Deakin added.
Matthew Raino of Nevada commented: “Broker Network has performed very well since our initial investment in July 2016, completing 9 acquisitions as part of their mission to build regional centres of broking excellence and continuing to provide market leading services to its Members. We look forward to supporting the Company during the next phase of investments and growth as part of our broader focus on the UK insurance services space.”
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