Austbrokers has bought a 60% stake in occupational healthcare provider Altius Group, as part of its ongoing diversification strategy.

The deal comes about a week after the listed broker network issued a profit warning. See other story

Austbrokers made an initial cash payment of $13.6 million for the majority stake. The acquisition is potentially valued at up to $24 million, depending on whether financial targets are achieved by Altius.

“We are not concerned [about the profit warning],” Altius Group MD Derick Borean told insuranceNEWS.com.au. “The decision to partner with Austbrokers was made after a lengthy period of diligence and consideration.

“We believe strongly in the Austbrokers owner-driver model and share similar values, similar philosophies and great optimism on the future of our industry.”

Altius has more than 120 employees across 12 locations nationwide, offering occupational health and rehabilitation, psychological health and medical assessment services.

“This major acquisition is a significant step in our overall diversification strategy,” Austbrokers CEO Mark Searles said. “Austbrokers has long signalled its intent to make more acquisitions and expand scale in risk services.

“Like us, Altius is positioned for growth and has a strong financial performance history, with rapidly growing market share across expanding markets.”

Austbrokers’ aggressive expansion strategy has extended into New Zealand, with investments in the BrokerWeb Management cluster group BrokerWeb Services.

It has also acquired a number of similar companies locally.