Alera Group Inc. said on Wednesday that it will merge with privately owned Tacoma, Washington-based Propel Insurance, as the core investors in the two companies have committed to raising new capital.
Transaction terms, which are expected to close this year, were not disclosed. Deerfield, Illinois-based Alera said in a statement that the deal will strengthen its presence in the northwest and southeast regions.
Propel is the 41st largest US broker in the latest Business Insurance ranking, with 2020 revenues of $ 107.6 million.
Alera Group is the 17th largest broker in US operations, with 2020 revenues of $ 554 million.
The deal will add 485 Propel employees and eight seats and bring Alera's workforce to nearly 3,000 people. [1
Alera said it will undergo a "recapitalization", securing unspecified new capital from private equity partner Genstar Capital, which helped form the company in 2017.
Alera will also receive funding from Propel's current capital partner , Flexpoint Ford, a Chicago-based private equity firm specializing in financial services and the healthcare industry.
Kurt Carlson, President and CEO of Propel Insurance, said in the statement that the deal would "build a solid foundation for future growth" and that "we expect to continue to expand nationally."