Hagerty Acquires Broad Arrow Group.

* Hagerty (HGTY), an automotive lifestyle brand and a leading specialty insurance provider focused on the global automotive enthusiast market, has announced that it has entered into a definitive agreement to acquire all outstanding shares of Broad Arrow Group, which specializes in the transactional segments of the collector car market.

Earlier this year, Hagerty acquired approximately 40 percent equity ownership in Broad Arrow Group (Broad Arrow) as a centerpiece of its automotive Marketplace strategy, designed to provide consumers new trust-based platforms for buying, selling and financing collectible cars.

Hagerty is now acquiring the remaining 60 percent of Broad Arrow for $64.8 million in an all-stock transaction, with an expected closing date of August 16, 2022.

"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," said McKeel Hagerty, CEO of Hagerty. "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."

The live and online collector car auction industry, Hagerty noted, is a substantial financial opportunity for the company. In the last 12 months ending June 30, 2022, Hagerty saw its members buy and sell more than 300,000 collectible cars for nearly $12 billion in value. The Broad Arrow acquisition will provide immediate growth opportunities in a compelling adjacency to the Hagerty ecosystem of products and services serving the vast collectible car market and enthusiasts around the world.

"After working together for a few months, we saw the compelling value proposition for the two organizations to fully integrate," said Kenneth Ahn, CEO of Broad Arrow Group. "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."

Hagerty Marketplace features an easyto-use proprietary automotive classified platform that connects buyers and sellers. Marketplace also provides access to Hagerty's...

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