Insurance Brands Australia (IBA) MD Jay Fereday says Steadfast “put forward a really strong proposal” that gave it an edge over other bidders to acquire the privately owned intermediary businesses.

As reported in a Breaking News yesterday, Steadfast has entered into an agreement to buy IBA for $301 million. IBA is the parent company of independent Melbourne-based brokerage Insurance House and other businesses including underwriting agencies ProRisk and Armada Underwriting.

Mr Fereday told insuranceNEWS.com.au today that IBA launched a competitive process for a buyer just before June 30, and the offer from Steadfast was the “most competitive”.

“In Steadfast we feel we have got the strongest cultural fit and we’ve got a committed investor who’s got relevant knowledge of the market, relevant networks, relevant expertise to help us move forward and continue the growth story,” Mr Fereday said.

“What Steadfast has invested into is a continued growth story that Insurance Brands Australia represents.”

The acquisition is expected to close next Tuesday, with Steadfast paying an initial $276 million for IBA comprising of both cash and Steadfast scrip. The remaining $25 million is subject to meeting performance criteria this financial year.

Mr Fereday says the IBA management team and operating structure will remain the same after Steadfast takes ownership of the business.

“The conversation internally is same faces and same places,” Mr Fereday told insuranceNEWS.com.au. “We keep our chairman, myself as MD, the senior leadership team remains the same, there’s no change to our market-facing brands, [and] no change to our corporate structure.”

Steadfast CEO Robert Kelly says the IBA acquisition is a “rare opportunity” for Steadfast, one that will deliver a platform for the business to “further scale and diversify” its service offerings to the SME and domestic markets.

“Insurance Brands Australia is a highly successful business with an exceptional growth track record and experienced management team,” Mr Kelly said today. “The combination of both businesses is complementary with exceptional strategic and cultural alignment and further strengthens our regional footprint across Australia.”