AUB Group (AUB) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of 95.9% of Prestige Insurance Holdings for GBP 219 million (AUD 432 million) accelerates UK retail market expansion, adds MGA and insurtech capabilities, and aligns with the strategy to build a scalable pan-UK platform.

• Prestige's diversified portfolio, specialist broking, and experienced leadership complement existing operations and fill key market gaps.

• The deal increases UK Retail GWP by over 45% to more than GBP 720 million, supporting long-term growth and further bolt-on M&A.

• Provides a platform for further consolidation and strengthens the independent brokerage sector in the UK and Ireland.

Financial terms and conditions

• Purchase price is GBP 219 million (AUD 432 million), representing a 12.9x EV/CY25 EBITDA multiple pre-synergies and 10.0x post-synergies.

• Funded by a fully underwritten AUD 400 million institutional placement at AUD 29.40/share, a non-underwritten share purchase plan, and a new AUD 200 million debt facility.

• Pro-forma CY25 leverage expected at 2.47x, with AUD 303 million in cash and undrawn debt post-acquisition.

• Step-up investments in 360 Underwriting Solutions and Pacific Indemnity were also completed, with multiples around 13x.

Synergies and expected cost savings

• Over AUD 10 million in annual cost synergies targeted by end of FY27, mainly from operating efficiencies and removal of duplicate functions.

• Additional revenue synergies anticipated from cross-selling and operational integration.

• EPS neutral pre-synergies, low to mid single digit EPS accretive post-synergies for CY25.