Financial services group Alexforbes has acquired a majority stake in local group risk insurance administration services company TSA Administration for an undisclosed amount.
The cash deal, subject to approval, will see the company, valued at R7.3b on the JSE, acquire a 60% stake in TSA Administration via its indirect wholly owned subsidiary Alexander Forbes Financial Services, with the option of obtaining the remaining 40% over the next five years, and will be financed by drawing down on its existing term loan facility.
TSA has over 25 years of experience in SA with more than 120,000 insured members and over 2,000 institutional clients.
The company will operate as an independently managed unit within the Alexforbes group and AF Insured Solutions will be integrated within TSA to ensure “consistent customer experience and to realise the anticipated benefits of specialised scale”.
“The transaction represents a natural and seamless alignment between the two companies, as we share an independence from product providers, a dedication to enhancing customer experience and the appetite to partner with intermediaries,” Alexforbes said in a statement on Friday about the deal, which is expected to become effective before the end of June.
“Employees are assured of their job security and continuity of their current terms and conditions of service.”
Alexforbes CEO Dawie de Villiers said the move “bolsters our existing binder business, further strengthens our offering to clients and broadens our relationship with intermediaries”.
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