Hagerty, a specialty insurance provider for the automotive enthusiast market, has brokered a deal to take full control of Broad Arrow Group.
The definitive agreement follows Hagerty’s decision earlier this year to buy 40% stake in Broad Arrow, a specialist operating in the transactional segments of the collector car market.
The US-based Hagerty is now acquiring the reaming 60% stake in an all-stock transaction valued at $64.8m.
Through the deal, Hagerty hope to gain access to the live and online collector car auction industry and enhance its capabilities.
The insurer noted that in the 12 months that ended on 30 June 2022, its members bought and sold over 300,000 collectible cars for around $12bn.
Hagerty CEO McKeel Hagerty said: “In addition to being trusted experts in their field, the Broad Arrow Group team shares our ethos of excellence when it comes to customer experience, so we are a natural fit.
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“We expect our additional investment in Broad Arrow to enhance our growth and profitability over time, as we intend to rapidly scale this part of our overall business.”
Broad Arrow Group CEO Kenneth Ahn said: “After working together for a few months, we saw the compelling value proposition for the two organisations to fully integrate.
“We look forward to serving the collectible car community in the years to come as a part of Hagerty’s comprehensive ecosystem of products and services.”
As part the agreed terms, Ahn along with other founders and colleagues will join the Hagerty team.
Ahn will take charge as the president of Hagerty Marketplace.
In late 2021, Hagerty went public after completing its merger with special purpose acquisition company Aldel Financial. The deal gave Hagerty a pro forma enterprise value of approximately $3.1bn.