AUB Group completes Tysers acquisition from Odyssey

Australian insurance broker AUB Group has completed its  acquisition of Lloyd’s wholesale broker Tysers, and has issued 9,018,974 new shares to  Tysers’ former owner Odyssey Investment Partners.

The new shares will be escrowed for a 24-month period.

AUB has drawn down A$598 million of its new A$675 million multi-currency debt facility. It expects leverage to reduce over the next 12 months.

Additional deferred consideration of up to £100 million (A$170 million) may also be payable two years post completion, dependent on Tysers’ achievement of agreed revenue growth targets.

Tysers is a specialist international insurance broker based in London and the sixth-largest wholesale broker in the Lloyd’s marketplace with A$3.6 billion annual gross premiums. The business operates across three segments: wholesale, managing general agents (MGA), and retail. The company has over 1,100 employees with the significant majority based in the UK.

Mike Emmett (pictured left), CEO and managing director of AUB, said: “We are very pleased to welcome the Tysers team. Given Tysers' position as a leading specialist wholesale insurance broker in the largest insurance market in the world, we are excited in the step change Tysers will bring to AUB in terms of capturing further economics in the insurance broking value chain, accelerating scale in AUB Agencies and supporting our clients with international placement needs.”

“The acquisition is not only strategically aligned and financially compelling, but strengthens our operational platform and delivers material scale,” Emmett added. “We look forward to optimising Tysers’ contribution as part of the AUB Group, a successful integration and delivering on the expected synergies.”

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