Deal overview
Australia-listed AUB Group (ASX:AUB) announced on Tuesday that it will acquire most of UK-based Prestige, an insurance broker and underwriting platform, for A$432 million ($298.7 million). AUB will purchase a 95.9% interest in Prestige, the company said, in a move designed to accelerate its expansion in Britain.
Valuation and business metrics
Prestige carries more than 300 million pounds of gross written premium (GWP). AUB’s statement values the business at 12.9 times calendar 2025 EBITDA before synergies. Once integrated, AUB expects its UK retail gross written premium to increase to about 720 million pounds.
Strategic position
The acquisition will also mark AUB’s entry into the UK managing general agent (MGA) segment - an area the company describes as largely untapped for the group. The deal therefore broadens AUB’s product and distribution mix within its U.K. operations.
Financing package
To fund the purchase, AUB has launched a fully underwritten institutional placement to raise A$400 million and will offer eligible shareholders the opportunity to participate through a share purchase plan of up to A$40 million. In addition, the group secured a A$200 million debt facility from Macquarie Bank to support the transaction.
Profit guidance and expected financial impact
AUB has reaffirmed its full-year 2026 profit guidance. The group said the Prestige acquisition is expected to be earnings-neutral before synergies and accretive thereafter. The company noted that the transaction remains subject to regulatory approval.
Timing and approvals
AUB stated that completion of the transaction is expected before June 30, 2026, contingent on obtaining the necessary regulatory clearances.
Key points
- AUB will acquire 95.9% of Prestige for A$432 million, with Prestige reporting more than 300 million pounds of gross written premium.
- The purchase values Prestige at 12.9 times calendar 2025 EBITDA before synergies and will lift AUB’s UK retail GWP to about 720 million pounds.
- Funding comprises a fully underwritten A$400 million institutional placement, a share purchase plan of up to A$40 million, and an additional A$200 million debt facility from Macquarie Bank.
Risks and uncertainties
- Regulatory approval - The transaction is subject to regulatory sign-off, and completion depends on receiving the necessary approvals.
- Realisation of synergies - While the deal is expected to be earnings-neutral before synergies and accretive thereafter, the timing and scale of synergies are not specified and could influence post-transaction earnings.
- Financing execution - The acquisition is dependent on successfully completing a fully underwritten placement, a share purchase plan, and drawing on a new debt facility; any issues with execution could affect funding availability.