PSC Insurance Group has gained approval from the UK Financial Conduct Authority for its £42 million ($76.1 million) acquisition of London-based Lloyd’s broker Paragon International.

The company says the clearance is a “major milestone” toward completion of the deal, which it announced in July along with a capital-raising.

“The contract remains conditional on one minor remaining condition precedent,” Company Secretary Stephen Abbott says in a release to the Australian Securities Exchange this afternoon.

“We are confident this condition will be met in a timeframe that will allow us to target, under the terms of the contract, a September 2019 month-end completion date.”

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

The business last year achieved revenues of £21 million ($38 million) and £4.2 million ($7.6 million) in underlying earnings before interest, tax, depreciation and amortisation.

Paragon generates more than 60% of its revenue from the US wholesale market and will remain an autonomous unit of PSC post-acquisition.

PSC says buying Paragon will give the Melbourne-based national broker business exposure to the US market, the world’s biggest insurance market, and fulfils a strategic objective.

The final acquisition price is subject to adjustment based on Paragon’s earnings for this year and next year.