Arachas Corporate Brokers is to become the third-largest insurance broker in the State after announcing a deal to acquire Kidd Insurances.
Established in 2004, Arachas employs more than 130 people at offices in Dublin, Cork and Waterford, but this number will grow to 230 following the deal. The combined turnover of the two firms is believed to be in the region of €30 million.
Arachas is a specialist corporate, SME and affinity scheme brokerage providing insurance facilities and financial-planning services to businesses.
Kidd Insurances, incorporated in 1919, serves both the retail customer and broker community.
Arachas will add the full range of Kidd Insurances’ affinity and wholesale products, and in particular its products for the childcare industry, to its suite of speciality products.
The deal marks the second acquisition in a period of planned expansion for Arachas following the management buyout of its business earlier this year, which was supported by private equity provider Sovereign Capital Partners. The company was advised by AIB Corporate Finance.
Arachas chief executive Donal Cronin said the deal was "a key transaction" for the firm. "They mirror our culture and our philosophy of providing the very best in customer service and focus on niche insurance solutions with their unique product range," he said.
Kidd Insurances managing director Noel Sweetman said he was "delighted" to have completed the deal.
“They share our belief in delivering market leading and cost driven insurance solutions to our valued clients and broker partners. I and all Kidd staff will remain in place and can now exploit the benefits of an enhanced product range, additional expertise and purchasing power that Arachas will bring.”
Arachas, whose name is the Irish for insurance, saw revenues rise by 9 per cent in 2015 from €13.8 million to €15.2 million as operating profit increased from €998,271 to €1.15 million.
The group had net assets for the 12 months ending December 31st, 2015, of €7.4 million, up from €6.5 million a year earlier.
The acquisition is subject to Central Bank approval.