Numis says acquisition is 'sensible'
THB Group yesterday announced the acquisition of risk management specialist Cardinus.
The deal will cost the broking group £5m in cash and shares.
THB hailed the move as demonstrating its commitment to growth in specialist areas.
Vic Thompson, THB’s group chief executive, said: “This is an important acquisition for THB. Cardinus has an exceptional blue-chip client list and we believe there will be significant cross-selling opportunities within the Group.
“The deal will also further develop our capability in the health and safety arena, while complementing our existing core strengths.”
Cardinus supplies online risk assessment and e-learning in the area of health and safety
Numis described the acquisition as a “sensible” bolt-on. It said in a note: “The acquisition of Cardinus improves THB’s position in the growing risk management market, while also generating cross-selling opportunities for the core insurance broking business. In addition, the business offers access to a non-cyclical, sterling income stream, providing a useful balance against US denominated broker revenues.
Numis added: “The acquisition of Cardinus appears to be a sensible bolt-on acquisition in a growth market that enhances the group’s earnings quality by offering balance and diversity to the group’s traditional business.”?
Last month, on the back of the group’s annual results, the company said it was looking for acquisition opportunities “with a good cultural and business fit with existing operations”.
Last year, THB acquired a controlling interest in professional indemnity specialist FiSure Holdings.
