Cash offer to total £95m
The Broker Network has accepted an offer from Towergate of approximately £95m.
An announcement to the London Stock Exchange has revealed that the two boards have reached an agreement on the terms of a recommended cash offer made by Towergate for the entire Broker Network business.
Towergate has offered 605p for each Broker Network share, which are currently valued at 590p.
The Broker Network directors have unanimously recommended that Broker Network shareholders accept the offer.
Towergate’s interest in The Broker Network has been well documented in recent months.
Peter Cullum, the executive chairman of Towergate, said: "This is a deal that makes great sense for employees, brokers and customers alike of Broker Network - our two organisations compliment each other perfectly. I have known [Broker Network chief executive] Grant Ellis for many years and I know we both share the same passion for promoting the role and value of a broker.
"We also share the same enthusiasm for how Broker Network could flourish under our ownership and continue to be run as a first class business for its broker members. Grant Ellis’s proposed position as the Chairman of the Network Division of Towergate demonstrates our commitment to offering the leading UK network proposition.”
Ellis said: "The Broker Network board feels that the offer made by Towergate is in the best interests of the Broker Network shareholders and indeed in the best interests of the Broker Network business, its network members and its people too.
"Towergate is a major presence in the UK insurance market and joining forces with them presents Broker Network and its members with further opportunities to expand and prosper, which I'm very excited about."
