Beneath the settlement, Steadfast can pay A$148.8m ($96.41m) in money upfront to Positive Insurance coverage.
The transaction contains two potential earn-out funds of A$28.8m and A$102.5m primarily based on Positive Insurance coverage’s efficiency in FY24 and FY25, to be paid on the finish of every 12 months.
A put and name choice settlement was additionally signed between the businesses for as much as two-thirds of the remaining 30% stake in Positive Insurance coverage, with an train date between September and October 2026.
Positive Insurance coverage is an underwriting company engaged in providing house and contents insurance coverage in Queensland.
By this deal, Steadfast goals to bolster and diversify its place as an underwriting company in Australasia.
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At present, Positive Insurance coverage is binding greater than 52,000 insurance policies, with an almost 85% retention charge and vital room for development, it added.
Steadfast Group managing director and CEO Robert Kelly mentioned: “According to our development technique, Steadfast Group continues to pursue extremely engaging acquisitions which might be complementary to the present portfolio and proceed to additional improve Steadfast Group as the most important basic insurance coverage dealer community and largest group of insurance coverage underwriting companies in Australasia.
“Positive Insurance coverage is a extremely compelling acquisition alternative, and there may be robust cultural alignment between the 2 organisations. We sit up for partnering with the Positive Insurance coverage group to proceed offering distinctive options to the market in regional Queensland and assist Positive Insurance coverage’s continued development.”
Positive Insurance coverage managing director Bradley Heath mentioned: “We’re delighted to be working with Steadfast Group, an organisation aligned with our philosophy at Positive Insurance coverage. We’re significantly excited by the potential alternatives Steadfast can present to assist our development and growth.”
The transaction is predicted to be accomplished by 30 November 2023.
In October, Steadfast forayed into the US market with the acquisition of ISU Group, a privately owned impartial insurance coverage company community.