PSC Insurance Group Limited (ASX:PSI) entered into binding agreement to acquire insurance broking portfolio and business assets from Griffiths Goodall Insurance Brokers Pty Ltd for AUD 48.7 million on July 9, 2019. The consideration shall be payable in three tranches. The first of AUD 38.4 million (80% of consideration) payable upon completion in the form of AUD 28.8 million in cash and AUD 9.6 million through issuance of 3.94 million PSC shares. The second tranche of AUD 4.8 million (10% of consideration) payable in first half of financial year 2021 with the amount adjustable dependent on revenue during twelve months. This second tranche will be combination of 75% in cash and 25% in PSI shares. The third tranches of AUD 4.8 million (10%) payable in first half of financial year 2022 with the amount adjustable dependent on revenue during twelve months. This third tranche will be combination of 75% in cash and 25% in PSI shares. The cash component of the First Tranche will be funded via the existing capacity within PSC Insurance Group Limited's debt facilities. The shares issued under first tranche will be escrowed for 24 months while for second tranche for 12 months. Post completion, insurance broking portfolio and business will continue to operate out of its Shepparton and Melbourne premises. Griffiths Goodall Insurance Brokers Pty Ltd key management will continue in their role of managing the day to day operations of the business, whilst all staff will be offered new employment agreements with PSC Insurance Group Limited, retaining all accrued entitlements. The transaction is subject to a number of customary conditions and the acquisition is expected to close during July 2019. The transaction will be strongly earnings per share accretive. Brendan Earle, Kate McKeough, Shaun Cartoon, Peter Kay and Tim Frost of HWL Ebsworth Lawyers Pty Ltd. acted as legal advisors for Griffiths Goodall Insurance Brokers Pty Ltd.