Tower Australia acquires the remaining 85 per cent of InsuranceLine, after buying 15 percent of the insurance product distributor in 2005.
Tower Australia Group (Tower Australia) is set to own 100 percent of InsuranceLine, after agreeing to acquire the remaining 85 percent of the company.
Tower Australia will obtain Australia's largest distributor of life insurance products for $136 million, with $61 million in cash and the balance in securities.
The group will issue $37.5 million in Tower Australia shares and $37.5 million of convertible notes to the vendors, with terms and conditions.
"This fulfils an important strategic objective for us. The acquisition gives Tower Australia end-to-end distribution capability in the fast growing direct-to-customer segment of the market," Tower Australia managing director Jim Minto said.
"The acquisition... gives us access to a quality management team and provides us with a call centre and sales capability that can be extended into other key business relationships and market segments."
InsuranceLine joint chief executives Howard Ware and Bradley Goldschmidt, along with other key executives, have signed long-term service agreements.
No staff reductions were envisaged.
The acquisition was subject to Foreign Investment Board approval and the satisfaction of typical funding conditions.
Tower Australia first bought 15 percent of InsuranceLine in 2005 and according to Minto had always intended on eventually owning 100 percent of the business.
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