PSC Insurance Group has agreed to pay $1.56 million for the general insurance broking arm of Australian Unity.

CFO Joshua Reid says the business will be a “great addition” to PSC, which has been growing its books locally and globally through acquisitions.

The Melbourne-based group announced the deal last week in an investor update to the Australian Securities Exchange.

PSC will manage the new portfolio, which generates about $625,000 in revenues annually, out of its Sydney office.

“The [Australian Unity] general insurance broking team will be a great addition to our existing Sydney business,” Mr Reid told insuranceNEWS.com.au. “They are experienced and client-focused and will be a welcome addition to the group.”

The deal was expected to be completed on Friday, with PSC first paying 85% of the agreed price and the balance within 90 days after the first anniversary of the acquisition.

The remaining 15% to be paid is “adjustable” and will be determined according to the revenue performance of the new business, PSC says. It will fund the purchase from existing cash resources.

In a separate announcement, PSC says London-based Paragon International and Shepparton-based brokerage Griffiths Goodall are performing well after they joined it last year.

PSC paid £42 million ($81.8 million) for Paragon and $48 million for Griffiths Goodall.

Paragon, a Lloyd’s broker, is expected to achieve adjusted earnings before interest, tax, depreciation and amortisation in excess of £7 million ($13.6 million) for the year to December 31.

“This strong result reflects revenue growth of greater than 20% for the period,” PSC says.

“This growth is a product of new client acquisition, incremental performance of a new casualty team and improving rates in Paragon’s key professional and financial lines specialties.”