Melbourne-based PSC Insurance Group is acquiring London-based Lloyd’s broker Paragon International for a base consideration of £42 million ($75.2 million).

The purchase is subject to UK regulatory approval and follows the listed brokerage group’s $48 million takeover of Shepparton-based Griffiths Goodall, which was completed on Friday.

Adding Paragon to its portfolio fulfils a key PSC strategic goal of having a presence in the US insurance market, MD Tony Robinson says.

About 60% of Paragon’s revenues come from the US wholesale brokerage market. It is also a significant player in the UK market and its addition to the PSC family will bolster the Australian group’s existing UK presence.

“The acquisition of Paragon will greatly add to the scale and expertise within our UK businesses and we will enhance our position as a leading Lloyd’s broker providing services to US insurance brokers,” Mr Robinson said.

“With the anticipated completion of the acquisitions of Griffiths Goodall and Paragon, the PSC Group will control in excess of $1.5 billion in premiums, making us an increasingly important participant in our key markets.”

PSC will raise $35 million from an institutional share placement to help fund the purchase. Paragon will remain an autonomous unit of PSC post-acquisition.

Established in 1996, Paragon employs 90 staff and specialises in professional and financial lines in the Lloyd’s and London broking market.

The business last year achieved revenues of £21 million ($37.6 million) and £4.2 million ($7.5 million) in underlying earnings before interest, tax, depreciation and amortisation.