Australia-based travel insurance provider Cover-More GroupLtd. will acquire Travelex Insurance Services Inc. for US$105 million.
On a pro-forma basis, Travelex Insurance Services generatedabout US$124 million in gross written premium and US$9.5 million in EBITDA forthe 12 months ended June 30.
Excluding cost synergies, the transaction is expected to below-single-digit accretive to Cover-More Group’s EPS.
The deal will be funded through an entitlement offer toraise about A$73.3 million. The balance will be funded via a drawdown of acorporate bank debt facility.
The transaction is expected to be completed late in 2016.