Jelf completes Yorkshire insurance broker acquisition

Independent consultancy Jelf has completed its acquisition of Yorkshire and Midlands insurance broker The Insurance Partnership Holdings Ltd in a deal worth up to £15.5m, following approval of the Financial Conduct Authority.

The firm said integration of the two businesses, including the delivery of value enhancing synergies, is underway.

Pursuant to the share purchase agreement relating to the acquisition, the company has issued and allotted 3,364,112 new ordinary shares of 1p each at 92p per share to some of TIP’s key senior management team and key sales people.

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In May, Jelf announced that it would pay an initial cash consideration of £8.9m and issue £3.1m in new shares to certain senior management and salespeople at TIP. A further payment of up to £3.5m will be tied to the company’s performance.

With this acquisition, Jelf’s gross written insurance premiums will increase by £53m to £235m. The company expects the deal to enhance earnings for the financial period ending 30 September 2014.

Jelf has said it will retain “key personnel” at TIP, including the management team led by Robert Worrell, who will become director of the Jelf Insurance Brokers board.