Steadfast-backed GSA Insurance Brokers has acquired the NSW and Victorian businesses of Mega Capital, a professional risk insurance broking firm that is also majority-owned by the listed broker network group.

GSA CEO James Telford says the acquisition will increase his company’s overall gross written premium to more than $200 million annually.

“It fits nicely in our sweet spot and provides us with a footprint in Melbourne which we don't have at the moment," Mr Telford told insuranceNEWS.com.au.

He says the business plans to build on this acquisition to further expand its presence across the major capital cities.

The transaction is expected to be finalised by the end of this month.

The acquisition follows similar moves in the past few months involving Steadfast-backed brokers.

In May Austcover and Regional Insurance Brokers announced an agreement to merge to assist in expanding their joint networks and capabilities in Queensland.

And last month Regional Insurance Brokers also announced it will join forces with Joe Vella Insurance Brokers in Cairns to strengthen their offerings in the north Queensland market.

Steadfast MD and CEO Robert Kelly says the group has seen some 30 such similar moves among its brokerages since 2013, when the business listed on the Australian Securities Exchange.

“It’s not a new model,” Mr Kelly told insuranceNEWS.com.au. “If you look at the recent acquisitions that we've done, it has mainly involved people who’ve worked very strongly in those businesses.

“Our model in our broking businesses is to always have the executives that run those businesses participate in the equity.”