General insurance broker Steadfast Group has launched a takeover offer for IBNA Ltd, a network of insurance brokerages.
The companies have entered into a bid implementation agreement, under which Steadfast will launch of off-market bid for up to 100 per cent of the fully paid ordinary shares of IBNA.
The deal is worth around $69 million, based on current estimated IBNA professional service fees for 2018/19. The valuation is yet to be confirmed. Consideration will be paid in the form of shares.
IBNA’s 2018/19 service fees are expected to be a bit over $9 million. Its shareholders are broker members of the network.
One of the conditions of the bid is that IBNA terminates a joint venture with a rival insurance broker network AUB Group. Another condition is that each accepting IBNA shareholder join the Steadfast network.
Steadfast, which was established in 1996, claims to be the biggest general insurance broker network and group of underwriting agencies in Australia. The network provides products and services to more than 388 insurance broker businesses in Australia, New Zealand and Asia.
In February, Steadfast reported net profit of $40.5 million for the December half – up 19.8 per cent over the previous corresponding period. Revenue was up 22.6 per cent to $320.9 million.
Gross written premium was $2.9 billion – an increase of 12 per cent.