General insurance broker Towergate has bought Paymentshield for an undisclosed sum.
Under the terms of the deal, Paymentshield will remain an independent business but will become a sister company to Towergate.
Paymentshield has also confirmed that Royal & SunAlliance will become its buildings and contents insurance underwriter and Norwich Union will underwrite its MPPI products. In addition, DAS will become directly responsible for underwriting home emergency and legal cover.
Paymentshield has been tipped on numerous occasions over the past few months to be looking for a buyer and Money Marketing reported two weeks ago that Towergate would snap-up the GI provider.
Towergate Chairman Peter Cullum says: “The fit with Paymentshield is excellent. It is committed to distributing through professional intermediaries, and we already have experience of providing leading insurance products to financial advisors through some of our existing operations.”
Paymentshield chief executive Stuart Pender says: “We have an aggressive organic and acquisition-led growth strategy, supported by the scale, skills and access to capital under the Towergate umbrella, whilst at the same time, retaining our independence.”