Marsh, an insurance broker and risk advisor, has agreed to acquire the brokerage business of South Africa-based independent retirement-fund administrator, Alexander Forbes (AF).
As a part of this acquisition, Marsh will pay an initial amount of $115.6m and as much as $44.4m more over the following two years, subject to certain conditions and the achievement of specified revenue, operational and strategic performance targets.
This business comprises Alexander Forbes Risk Services (AFRS) and certain local and correspondent operations serviced across sub-Saharan Africa, including Botswana and Namibia, the insurance broker said.
The acquisition will expand Marsh’s presence in Africa and expected to give it a substantial presence in South African market.
Following this acquisition, the insurer has appointed Jurie Erwee, CEO of AFRS as CEO of the combined business in Africa, to be called Marsh Africa, and will report to Batchelor.
Similarly, Brian Blake, CEO of Marsh South Africa, will be appointed as vice chairman of Marsh Africa with specific responsibility for developing African business outside South Africa, and will report to Erwee.
The deal, which is subject to regulatory and other approvals, is expected to close in the fourth quarter.