Austalia-listed insurance broker AUB terminates deal to acquire Coverforce

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Australia-listed insurance broker network AUB Group announced Monday its decision to terminate a deal to acquire the country’s largest private insurance broker, Coverforce Holdings, from Pemba Capital Partners for around A$150 million ($102 million) to A$200 million ($137 million).

In August, AUB Group signed an agreement to acquire a 49-per cent stake of Coverforce with Pemba Capital Partners, which is just one of Coverforce’s shareholders. The two firms, however, agreed to further work to effect the purchase of the shares of all other shareholders.

The planned acquisition faced resistance from Coverforce’s management, which holds 51 per cent. Coverforce CEO Jim Angelis was earlier quoted as saying that they did not approve the sake sale process and that Pemba did not have the authority to make the sale.

Established in 1994, Coverforce is the largest private insurance broker in Australia serving SME, mid-market and large corporate clients. The company is headquartered in Sydney and has branches in Adelaide, Brisbane, Melbourne, and Perth.

In 2017m, Coverforce quit the Steadfast network to join Insurance Brokers Network of Australia (IBNA), which at the time belonged to the AIMS joint venture partnership with AUB’s Austbrokers.

In a disclosure to the Australian Securities Exchange Monday, AUB Group said delivery of due diligence materials, which was one of the conditions of the agreement, has not occurred and it has not waived its right to due diligence.

“In consequence, and as the parties have been unable to reach agreement on an amended date for delivery of due diligence materials, the conditional sales agreement has been terminated,” the company said.

Following the termination of the deal, AUB said it will continue to apply disciplined approach to its M&A strategy to acquire businesses that accelerate scale and growth, leverage and expand its expertise in key insurance risk areas and market segments, among others.

AUB, an equity-based risk management, advice, and solutions provider in Australasia, currently services over 93 businesses looking after 550,000 clients.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.