The transaction is expected to close in the fourth quarter, subject to regulatory approvals. Financial details were not disclosed.
In January, Insurance Insider reported that Kentro Capital was looking for a deal with a US strategic for Nexus, with adviser Morgan Stanley pitching the firm as a London and/or international platform to MGAs and brokers in the US.
Back then, sources provided an Ebitda range for the business of between $20mn and $30mn.
Headquartered in London, Kentro manages over £500mn of gross written premium with offices in the UK, US, Europe, Asia and Dubai. Its subsidiaries include Nexus, Xenia, Millstream, Capstone Brokers and Spectrum Risk Management.
Among them, Nexus underwrites across a diversified portfolio of 20 risk classes, including trade credit, financial lines and aviation, through a network of over 800 retail broker partners in nine countries.
Xenia is one of the largest retail trade credit brokers in the UK, with over 1,500 policyholders ranging from large corporates to SME customers.
The Kentro Group and its entities will continue to trade and operate as they have historically, with the same leadership team, brand and market focus, according to a joint press release.
As such, Kentro Group CEO Colin Thompson and CFO Stuart Rouse will continue their roles, now working directly with Brown & Brown’s senior vice president Mike Bruce, executive vice president Chris Walker, and executive vice president Barrett Brown.
Commenting on the acquisition, Walker said: "The cultural alignment between our businesses demonstrates our shared vision and commitment to assisting customers of all sizes to meet their unique risk management needs. Leveraging the Power of WE across our programs businesses and adding new specialty capabilities to our portfolio strengthens our presence with London markets and positions us for continued growth.”
Regarding Xenia, Brown added: “We look forward to working with Tim Coles, Xenia’s CEO, and the entire Xenia Broking team. The great capabilities they bring will add significant value to our retail segment teammates and customers. The breadth of their specialization in trade credit will drive our continued growth and expanded presence in the UK and Western Europe and provide for new opportunities in the US.”
Amid an overall slowdown in M&A activity, Brown and Brown has actively continued to pursue inorganic growth. Its latest deal was in November, when it completed a $86.7mn deal to buy European wholesaler BdB.
