Steadfast Group has completed an agreement to acquire 100% of ISU Group, a privately owned independent insurance agency network in the US, for $55 million.
The acquisition, which signals Steadfast’s entry into the US market, will be funded from Steadfast’s existing corporate debt facilities and free cash flow, and is expected to be EPS accretive from the date of acquisition.
Robert Kelly, Managing Director & CEO, Steadfast Group, commented: “Following numerous discussions and presentations to US intermediaries and insurance carriers, Steadfast has identified significant opportunities to deliver its unique business model to the US insurance market.
“We are excited to do this through our acquisition of ISU, given their cultural alignment with Steadfast, established and trusted brand and experienced management team. We look forward to working with the ISU team to deliver further value to ISU through implementing, where appropriate, Steadfast business and insurance solutions to support ISU members and their clients.”
Steadfast’s says that its product and service offering can substantially enhance what is currently offered in the US, providing potential for the company to enhance and extend ISU’s product and service offering to members.
ISU provides Steadfast with a low-risk approach to the US insurance market and the potential for strong growth in revenue and profit.
