Independent consultancy Jelf Group has acquired Yorkshire and the Midlands-based general insurance broker, The Insurance Partnership (TIP), in a bid to expand into the regions.
Jelf paid £12m for the entire share capital of TIP while setting aside a further £3.5m for deferred performance related payments.
The deal will allow Jelf to pick up business in Yorkshire, through TIP's offices in Hull, York and Leeds, and develop operations in the Midlands, through TIP's base in Wolverhampton.
The merged group was ranked sixth largest broker by GWP, according to Cornell Consulting, and will see its gross written insurance premiums increase by £53m to £235m.
The firms expect to see revenue growth in the first year following the acquisition, they said in a statement.
Jelf intends to benefit particularly from creating synergies with TIP's operations in the larger corporate insurance risk markets.
TIP's managing director Robert Worrell will continue to lead the firm and will join the Jelf Insurance Brokers board as a director.
TIP posted an adjusted revenue of £8.8m in 2012 with an adjusted EBITDA of £1.3m and profit before tax of £0.64m.
The acquisition is subject to FCA approval.