Besso agrees sale to BGC after rejecting other suitors

Specialist re/insurance broker Besso Insurance has confirmed that it will be sold to BGC Partners, a global brokerage company which until now has operated in the financial and real estate markets.

The acquisition, revealed by Intelligent Insurer yesterday, will be BGC’s first venture into the insurance market.

Besso said that it discussed a sale with several interested parties before selecting BGC Partners on the basis it is “similar in its agile and dynamic approach”. Besso commenced a strategic review of its business in August 2015, which led to the sale process.

Following the transaction, Besso will retain its independent status along with its entire workforce. The current chairman and chief executive Colin Bird will continue as chairman, with Robert Dowman and Russell Nichols becoming joint chief executives.

Further details of the transaction have not been disclosed, but it reportedly values the broker at approximately £70.5 million subject to various adjustments.

Besso generated revenue of approximately £44 million in the financial year ended December 31, 2016. The transaction is expected to be immediately accretive upon closing.

Bird said: “I am delighted that Besso is becoming a part of BGC, a larger and better capitalized company with a global footprint and demonstrable success in building brokerage businesses.

“The opportunities this deal presents are substantial. BGC and its affiliates have deep relationships with leading companies in real estate, financial services, and other industries, which we believe will help us in growing our existing franchise.

“I would like to thank all Besso staff and management for their hard work in getting us to this point and also BP Marsh for their strong support throughout the last 21 years. All of us at Besso look forward to this new beginning.”

Shaun Lynn, president of BGC Partners, said: "We are excited about this strategic acquisition in the insurance brokerage sector. After extensively researching the insurance brokerage industry, Besso stood out as providing an excellent platform on which to establish a new vertical. Over time, we expect to build a sizable insurance brokerage division within the company."