PSC Insurance Group is set to expand its Australian presence with the proposed acquisition of Ensurance, an underwriting agency specialising in professional and financial lines. 

The Melbourne-based brokerage expects to gain in excess of $1.5 million in annualised earnings before interest, tax, depreciation and amortisation (EBITDA) in the first year following completion of the acquisition. 

PSC announced the deal last week, which follows its purchase of the UK business of Ensurance for $8.2 million. The UK deal closed this year after securing regulatory clearance. 

“We’re buying the company because we like the business inside and the individuals in particular. It’s a really capable group and it’s also a well-run underwriting agency in the areas that we particularly like,” MD Tony Robinson told insuranceNEWS.com.au. 

PSC is proposing to buy Ensurance via a binding scheme implementation deed that puts the purchase price at no less than $25.2 million. 

Implementation of the scheme is targeted for late November and is subject to a number of customary conditions including Ensurance shareholder and court approvals. 

Under the terms of the scheme PSC will seek to acquire all of the shares of Ensurance in a deal that has the purchase price at “the greater of $25.2 million and 5,000,000 fully paid ordinary shares in PSC”. 

Ensurance shareholders will receive about 0.056 new PSC shares for each share they currently own in the underwriting agency. 

The final acquisition price will be satisfied by way of the issue of five million PSC shares to Ensurance shareholders, with any difference between the value of those shares and the purchase price of $25.2 million to be paid in cash.