DAYTONA BEACH, Fla. - Brown & Brown, Inc. (NYSE:BRO), an insurance brokerage firm, has announced the acquisition of assets from DealerMax, a company specializing in finance and insurance (F&I) products and training for auto dealerships. This move aims to enhance Brown & Brown Dealer Services' (BBDS) offerings in the automotive sector, particularly in Pennsylvania and the Northeast region.
DealerMax, established in 1982 by Jim Maxim (NASDAQ:MXIM), Sr., and currently led by Jim Maxim, Jr., has built a reputation for boosting the F&I departments of dealers through customized training and product solutions. The DealerMax team is set to join BBDS and will continue operating from their Berwyn, Pennsylvania office under the guidance of Robert Hunter, president of Automotive F&I at BBDS. Jim Maxim, Jr. will assist during the transition period.
Mike Neal, president of BBDS, expressed enthusiasm for the acquisition, citing a longstanding collaborative relationship with the Maxim family. He anticipates that the integration of DealerMax's experienced team and customer base will contribute positively to BBDS's service capabilities.
Jim Maxim, Jr. echoed this sentiment, emphasizing the shared vision and commitment to excellence between DealerMax and Brown & Brown. He expressed confidence that the merger is in the best interest of DealerMax's employees and customers.
Brown & Brown, Inc., with a history dating back to 1939, operates globally with over 16,000 team members across more than 500 locations. The company is known for its risk management solutions and insurance products for individuals and businesses.
This acquisition is part of Brown & Brown's strategic expansion and is expected to bolster its presence in the automotive F&I industry. The financial terms of the deal have not been disclosed.
The information regarding this acquisition is based on a press release statement.
InvestingPro Insights
In light of Brown & Brown's recent acquisition of DealerMax, the company's financial health and market performance provide valuable context for investors. According to InvestingPro data, Brown & Brown (NYSE:BRO) maintains a robust market capitalization of 24.55 billion USD. The firm's commitment to growth is evidenced by a significant 17.88% increase in revenue over the last twelve months as of Q4 2023, alongside a healthy gross profit margin of 48.0%. This financial vigor is further underscored by an operating income margin of 27.95% during the same period, indicating efficient management and strong profitability.
InvestingPro Tips also reveal that Brown & Brown is a stalwart when it comes to rewarding shareholders, having raised its dividend for 31 consecutive years, a testament to its financial stability and dedication to returning value. The company is also trading at a low P/E ratio relative to near-term earnings growth, which may attract investors seeking value. These financial indicators, along with the company's strategic acquisition moves, suggest that Brown & Brown is positioning itself for sustained success in the insurance brokerage industry.
For investors seeking more in-depth analysis, InvestingPro offers additional tips on Brown & Brown, which can be accessed through InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore a total of 11 InvestingPro Tips that can provide a more comprehensive understanding of the company's potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.