Cobra Holding has made its first acquisition since joining AIM last month with the buy-up of rival broker Tubbs Insurance Services.
Cobra, a major UK-based retail and wholesale insurance broking group, will now integrate the company, which it bought for £4.5m, with KW Batten a consultancy it acquired prior to joining the market.
Both companies were part of the Cobra network but as the principals of KW, Ken and Sandra Batten, have retired, the Tubbs management team will take-over the running of the business.
The combined operation is thought to add a further £1m of revenue to Cobra and is a part of the group’s ‘hub and spoke’ strategy; the establishment of regional brokers linked with smaller independent firms within their catchment area.
Cobra director Phil Truman said: “Both acquisitions are an excellent demonstration of our hub and spoke strategy in action.
“In negotiating these transactions we understood the importance of taking into account succession within the business for senior management.
“The acquisition of Tubbs is the first we have completed since joining AIM in June and we continue to evaluate other opportunities in line with our strategy.”
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