With the takeover, JMG Group will bring its gross written premium (GWP) placed in Scotland to £50m.
As part of the deal, 50 employees from GS Group have joined JMG Group.
GS Group managing director George Stubbs will continue to spearhead the firm and remain a shareholder.
He noted that JMG Group will offer access to markets and infrastructure that would boost the firm’s innovation capabilities. He also said that JMG Group mirrors its values and will support its autonomous growth.
Stubbs said: “We are currently a £30m GWP business and this investment will help us to achieve our growth ambitions of becoming a £50m GWP business in the next four years.
“We will continue to offer the same professional service, with the existing team, still operating as GS Group, but with the added benefits of being part of a larger Group of insurance businesses.”
The deal, which awaits the clearance of the Financial Conduct Authority (FCA), marks the second major purchase in Scotland for JMG Group in over a month.
Set up in 1991, Perth-based GS Group offers a personal approach to business, personal lines and risk management insurance services.
Currently, JMG Group holds more than 15 businesses with 19 offices in the UK.
JMG Group CEO Nick Houghton said: “This is an exciting deal for our expanding Group as our growth strategy ramps up another gear.
“GS Group is a major player in Scotland and this deal complements our recent investment in Greenwood Moreland in Scotland, taking our GWP placed in Scotland to £50 million.”
Andrew Gould and Gavin Hood of Deloitte Corporate Finance advised GS Group on the deal, along with Ewan Gilchrist and Gordon Tatnell of Dickson Minto.
Gordons Solicitors and Deloitte served as advisers for JMG Group.