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Daily Insurance Industry News
Friday 19th of October 2018
November 28, 2007

The Broker Network and Towergate In Takeover Agreement

by Stewart Douglas

Story link: The Broker Network and Towergate In Takeover Agreement

Intermediary group The Broker Network has today received and accepted a takeover approach by Towergate for its business and assets, valuing the company at just under £100 million, as the company looks to expand its reach through its aggressive programme of targeted acquisitions.

The announcement today was made to the London Stock Exchange, to the effect that the directors of both companies had reached agreement on the broad terms of a cash-heavy offer for the business and assets of The Broker Network valued at around £6.00 per share.

The 605p per share offer from Towergate sees the company’s well publicised interest in acquiring The Broker Network come to fruition, after months of speculation and hearsay surrounding a potential takeover approach.

Speaking today on the move, Peter Cullum of Towergate suggested that the terms of the deal were well suited to all interested parties: from employees through to the customers of The Broker Network. He added that both organisations already have substantial similarities and that integration would be a straightforward process pending shareholder approval.

Grant Ellis from The Broker Network today said that its board of directors were convinced the terms of the agreement represented good value for the common interests of stakeholders, and that the proposals laid forward by Towergate would ultimately benefit the business of The Broker Network.

The board of directors of The Broker Network today urged shareholders unanimously to accept the terms of the takeover bid, following the agreement reached by both sides for the acquisition. However Towergate still need sufficient support from the ordinary shareholders in order to see the takeover bid through to completion.

 

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