We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brown & Brown Inks Deal to Acquire VAS-Affiliated Companies
Read MoreHide Full Article
Brown & Brown, Inc. (BRO - Free Report) has agreed to acquire Vehicle Administrative Services, LP, SafeRide Motor Club, Inc. and affiliates (collectively, “VAS”). The acquisition, following the fulfillment of certain closing conditions, is expected to be completed in October 2020. However, the financial terms of the transaction were not made public.
Formed in 1998, Dallas, TX-based VAS (Vehicle Administrative Services, Ltd.) is the premier wholesale provider of automotive-related benefits, specializing in emergency roadside assistance and first notice of loss services in the United States.
VAS offers the best roadside assistance in the industry, as well as a robust suite of auto-related ancillary services and consumer auto protection products.
Rationale Behind the Deal
With this acquisition, Brown & Brown will leverage the expertise of VAS in customer service, compliance and development of new protection products, which is similar with the customer first values of Brown & Brown Dealer Services. Thus, this partnership will enable Brown & Brown to cater to collective customers with innovative solutions.
The capabilities and expertise of the acquirer will provide VAS with the opportunity to grow along with maintaining a high level of performance.
Inorganic Growth Story
Brown & Brown pursues frequent buyouts in order to achieve top-line growth. Its revenues have grown as a result of its continued focus on net new business growth and acquisitions. Notably, this latest transaction marks the fifth buyout by the insurance broker in the third quarter of 2020. In the first six months of 2020, the insurer closed 10 transactions with estimated annual revenues of $85 million.
Consistent investments along with solid earnings will aid this Zacks Rank #2 (Buy) insurance broker in its inorganic efforts. These strategic acquisitions drive Brown & Brown’s commission and fees, which, in turn, boost revenue growth.
From 1993 through the second quarter of 2020, the company acquired 546 insurance intermediary operations. It continues to make investments to drive growth and margins.
Other Acquisitions in the Same Space
There have been a host of acquisitions in the insurance brokerage space of late, given the significant capital available. Recently, Arthur J. Gallagher & Co. (AJG - Free Report) closed the buyout of Edmonton, Alberta-based Insight Insurance & Risk Management Ltd. Marsh & McLennan Companies’ (MMC - Free Report) unit, Oliver Wyman acquired a minority stake in Corridor Platforms, and Aon plc (AON - Free Report) completed the acquisition of 100% share capital of Farmington Administrative Services LLC and certain assets of other Farmington companies.
Price Performance
Shares of Brown & Brown have risen 28.5% in the past year, outperforming the industry’s increase of 9%. The company’s efforts to ramp up growth and capital position should continue to drive shares higher.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Brown & Brown Inks Deal to Acquire VAS-Affiliated Companies
Brown & Brown, Inc. (BRO - Free Report) has agreed to acquire Vehicle Administrative Services, LP, SafeRide Motor Club, Inc. and affiliates (collectively, “VAS”). The acquisition, following the fulfillment of certain closing conditions, is expected to be completed in October 2020. However, the financial terms of the transaction were not made public.
Formed in 1998, Dallas, TX-based VAS (Vehicle Administrative Services, Ltd.) is the premier wholesale provider of automotive-related benefits, specializing in emergency roadside assistance and first notice of loss services in the United States.
VAS offers the best roadside assistance in the industry, as well as a robust suite of auto-related ancillary services and consumer auto protection products.
Rationale Behind the Deal
With this acquisition, Brown & Brown will leverage the expertise of VAS in customer service, compliance and development of new protection products, which is similar with the customer first values of Brown & Brown Dealer Services. Thus, this partnership will enable Brown & Brown to cater to collective customers with innovative solutions.
The capabilities and expertise of the acquirer will provide VAS with the opportunity to grow along with maintaining a high level of performance.
Inorganic Growth Story
Brown & Brown pursues frequent buyouts in order to achieve top-line growth. Its revenues have grown as a result of its continued focus on net new business growth and acquisitions. Notably, this latest transaction marks the fifth buyout by the insurance broker in the third quarter of 2020. In the first six months of 2020, the insurer closed 10 transactions with estimated annual revenues of $85 million.
Consistent investments along with solid earnings will aid this Zacks Rank #2 (Buy) insurance broker in its inorganic efforts. These strategic acquisitions drive Brown & Brown’s commission and fees, which, in turn, boost revenue growth.
From 1993 through the second quarter of 2020, the company acquired 546 insurance intermediary operations. It continues to make investments to drive growth and margins.
Other Acquisitions in the Same Space
There have been a host of acquisitions in the insurance brokerage space of late, given the significant capital available. Recently, Arthur J. Gallagher & Co. (AJG - Free Report) closed the buyout of Edmonton, Alberta-based Insight Insurance & Risk Management Ltd. Marsh & McLennan Companies’ (MMC - Free Report) unit, Oliver Wyman acquired a minority stake in Corridor Platforms, and Aon plc (AON - Free Report) completed the acquisition of 100% share capital of Farmington Administrative Services LLC and certain assets of other Farmington companies.
Price Performance
Shares of Brown & Brown have risen 28.5% in the past year, outperforming the industry’s increase of 9%. The company’s efforts to ramp up growth and capital position should continue to drive shares higher.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>