AUB Group Limited (ASX:AUB) entered into an agreement to acquire 70% stake in Pacific Indemnity Underwriting Solutions Pty Ltd for AUD 140 million on May 22, 2024. The upfront consideration for AUB?s 70% stake is AUD 105 million to be paid on completion, with the balance approximately AUD 35 million to be payable 18 months after completion on a sliding scale subject to FY25 performance. The acquisition values Pacific Indemnity at an enterprise value of AUD 192 million, representing 13.0x FY23 EBIT. AUB is undertaking an AUD 200 million equity raising of which, AUD 105 million of the raise will be used to fund the upfront consideration for Pacific Indemnity while the balance of AUD 95 million will support the continued execution of AUB's accretive and strategic M&A pipeline and fund the cost of the
equity raising. Pacific Indemnity management team will remain with the business and continue to own a 30% stake. In FY23, Pacific Indemnity delivered EBIT of AUD 15 million. The acquisition is expected to complete on July 1, 2024. Allens is acting as legal adviser to AUB.

AUB Group Limited (ASX:AUB) completed the acquisition of 70% stake in Pacific Indemnity Underwriting Solutions Pty Ltd on July 1, 2024.