RSA sells stake in Noraxis | Canadian Insurance

RSA sells stake in Noraxis

Arthur J. Gallagher picks it up for $500 million

RSA Canada says it’s selling its 87 percent stake in Noraxis Capital to Arthur J. Gallagher for $500 million.  The remaining 13 percent of the brokerage network will stay in the hands of various management employees of Noraxis.

“The timing was right to sell our stake,” says RSA Canada’s CEO Rowan Saunders, and RSA is expected to get cash consideration of $41 million, subject to closing adjustments when the deal is finalized.

Read: The latest M&A news

Saunders called Noraxis – one of the largest broker networks in the country — strategically important, but not a core part of RSA Canada’s business. With more than 650 employees spread across five provinces, the network racked up almost $125 million in revenue last year.

Arthur J. Gallagher says the deal means Noraxis will be able to leverage its sales and service capabilities across Canada.

The deal still needs to get regulatory approval and is expected to wrap up in July.

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