Regional broker Griffiths Goodall will retain its brand identity following a $48 million acquisition by PSC Insurance Group.

The Shepparton-based brokerage was raided by the Australian Securities and Investments Commission (ASIC) earlier this year.

But PSC MD Tony Robinson says his business completed “a lot of due diligence” before striking the deal.

“We spent a lot of time with [the Griffiths Goodall management team] and we are really comfortable that it is a well-run business full of capable people with a terrific client base,” he told insuranceNEWS.com.au.

Griffiths Goodall’s branding will remain prominent, in line with the PSC practice when it buys a company with a strong identity.

“If it has got great resonance with the customer, we don’t look to make changes,” Mr Robinson said.

The purchase price will be paid in three tranches. The first, comprising $28.8 million in cash and $9.6 million in PSC shares, is due on completion of the deal. The remainder will come through payments in the first half of 2020/21 and in the following year, and will depend on revenues.

Griffiths Goodall, established in 1989, has become one of the largest regional independent insurance brokers, although much of its business is generated outside its Goulburn Valley base.

It has more than 30 staff, an additional office in Melbourne and a strong presence in commercial, industrial, transport, logistics, pleasurecraft, agri-risk and personal insurance.

Griffiths Goodall’s key managers will continue overseeing day-to-day operations and all staff will be offered new employment agreements.

Director Benjamin Goodall says he and the other directors “will be remaining in the business to grow and enhance our client offerings”.

ASIC and Australian Federal Police officers arrived at the Griffiths Goodall Shepparton offices in March with search warrants and seized a number of files.

Mr Goodall has previously said the issue being investigated by ASIC does not relate to anything of a criminal nature, with discussion focused on a paperwork-based issue that was denied.

“We’re very confident that we have always operated within the law,” he said after the raid.

PSC is buying the assets of the broking business and not the corporate entity, which would leave ASIC free to continue any matters with the licence-holder.