Insurance group Tower Australia has paid $136 million to acquire InsuranceLine, to strengthen its direct marketing business in Australia.
The deal's completion on Friday came a month after the agreement to purchase the remaining 85 per cent was announced.
Tower Australia's managing director Jim Minto said the acquisition is strategically important for the company, and the transaction complements its existing advice and workplace channels.
"The acquisition gives Tower Australia end-to-end distribution capability in the direct to customer segment of the market, which is not served by advice and builds on our highly competitive market position," Minto said
InsuranceLine services more than 170,000 customers for Tower Australia's life insurance products.
The acquisition would give Tower Australia access to call centre and sales capabilities, which could also extend into other business and market segments.
The agreement to purchase the remaining 85 per cent was announced on October 2, 2008, subject to approval from the Foreign Investment Review Board (FIRB) and the satisfaction of a number of conditions.
The insurer will pay $61 million in cash and issue 12,842,466 shares to become full owners of the direct marketing company.
"Tower Australia remains well-capitalised and financially strong. Our financial strength provides us with the ability to make this important acquisition in challenging economic circumstances," Minto said.
Tower Australia first bought 15 per cent of InsuranceLine in 2005.
