Arthur J. Gallagher To Buy Noraxis

(RTTNews) - Arthur J. Gallagher & Co. (AJG) said Monday that it has signed an agreement to acquire Canadian insurance broker Noraxis Capital Corp.

Noraxis provides retail commercial, personal and employee benefits insurance products and services. Noraxis generated nearly C$125 million in revenue for the year ended December 31, 2013, has more than 650 employees and operates out of 23 offices across Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario.

Upon completion of the deal, Gallagher will hold about 87% of the equity interests in Noraxis. The remaining 13% will continue to be owned by various management employees of Noraxis.

Gallagher is paying net consideration of C$422 million, or US$388 million, for its 87.1% interest.

The deal is expected to close in July of 2014.