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Acrisure buys Tulco’s AI platform
Posted on Thursday, 30 July 2020 10:18
Acrisure has acquired an artificial intelligence (AI) business from Tulco to bring best-in-class data science and machine learning capabilities to the insurance brokerage industry.
Financial terms were not disclosed in the announcement; however, Bloomberg reported that the deal was worth USD 400.00 million and represents the buyer’s largest purchase to date.
The transaction was a stock-for-stock trade resulting in Tulco becoming a significant minority shareholder in Acrisure.
With the new technology infrastructure, the acquiror will fully harness AI capabilities to rapidly innovate the product development and insurance sales and marketing process across its portfolio of Agency Partners.
Acrisure is majority-owned by employees and has locations across six countries.
It has seen record growth, from USD 650.00 million in annual revenue in 2017 to more than USD 2.00 billion today, completing over 500 acquisitions in the past several years.
The two firms have worked together in the past, forming Altway Insurance, a fully-AI backed brokerage focused initially on individual health benefits in 2019.
It has been rapidly successful, with 24 consecutive weeks of 10.0 per cent, or more, week-on-week growth.
Headquartered in Pittsburgh, Tulco is an alternative investing platform, combining permanent capital, management expertise and top AI resources.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 300 deals targeting insurance agencies and brokerages announced worldwide in 2020 to date.
In the largest of these by far, Aon agreed to acquire Willis Towers Watson USD 30.03 billion.
Japan-based Sony Financial Holdings, France-headquartered Financiere CEP, UK-located Global Risk Partners and Vietnam’s Vietcombank Cardif Life Insurance, among others, have also been targeted in 2020 to date.
© Zephus Ltd