PSC Insurance Group Limited (ASX:PSI) agreed to acquire Abaco Insurance Brokers Limited for £21 million on March 3, 2021. Under the terms of agreement, the consideration is payable in three tranches as follows: On completion 70% of the purchase price £14.7 million will be paid in the form of £10.3 million in cash and £4.4 million in fully paid ordinary shares in PSC. After first year 10% of the purchase price £2.1 million will be paid in the form of £1.5 million in cash and £0.6 million in shares. PSC have the ability to pay all of this tranche in cash under certain conditions. This tranche will be subject to an upward or downward adjustment based on the year 1 EBITDA. After second year 20% of the purchase price £4.2 million will be paid in the form of £3 million in cash and £1.2 million in shares. PSC have the ability to pay all of this tranche in cash under certain conditions. This tranche will be subject to an upward or downward adjustment based on the year 2 EBITDA. All Shares issued under the agreement will be subject to escrow restrictions for up to 2 years from the issue date. Funding for the acquisitions will be via the Group’s existing cash resources. In similar transaction PSC insurance has agreed to acquire Trust Insurance Services Ltd for £15.5 million. The acquisitions are conditional upon approvals by the UK Financial Conduct Authority. The acquisitions are expected to generate a combined incremental annual EBITDA of approximately £4 million for PSC Insurance Group.