Hagerty to acquire remaining stake in Broad Arrow Group
Hagerty 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. Broad Arrow Group and its subsidiary, Collectors Garage, are focused on providing best advice for clients to buy and sell high-quality collector cars via private sales and auction.
Earlier this year, Hagerty acquired approximately 40% equity ownership in Broad Arrow Group 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% of Broad Arrow for $64.8 million in an all-stock transaction, with an expected closing date of August 16, 2022.
Broad Arrow founders and industry veterans Kenneth Ahn, Alain Squindo, Ian Kelleher, Donnie Gould, Barney Ruprecht, Alexander Weaver, David Swig, Karsten Le Blanc, Ramsey Potts, Madeline Baker and Mike Mortorano, along with their colleagues, will become a part of the Hagerty team as part of the deal, and Kenneth Ahn will continue to lead the team as President of Hagerty Marketplace.
“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. 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.” – McKeel Hagerty, CEO of Hagerty.
“After working together for a few months, we saw the compelling value proposition for the two organizations to fully integrate. 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.” – Kenneth Ahn, CEO of Broad Arrow Group.
Finally, if you are wondering about Hagerty’s mega project with State Farm – the launch is now scheduled for next year. But as Hagerty says – this isn’t a delay but a complexity.
