CBG focuses on the healthcare sector, with the acquired business providing specialist niche insurance and general insurance brokerage services.
The deal comprises an initial £1.8 million payment, of which the majority will be satisfied in cash with the balance in shares. The terms of the agreement include a deferred payment that could be as much as £825,000 if the acquired business meets agreed financial targets.
The deferred sum will be made in two equal tranches with the first payment due in December 2008 with the second 12 months later.
In addition cash will be available to cover the amount on Marcus & Hearn’s balance sheet, expected to be up to £800,000.
Marcus & Hearn reported a pre-tax profit of some £69,000 in the year to October 2006. The firm provides twin and multiple birth and travel insurance schemes, also distributing commercial and general insurance products. The firm operates directly and through a network of 450 brokers.