Corporate Report: Dec. 30

Brown & Brown buying Calif. firm for $395 million
Daytona Beach- and Tampa-based Brown & Brown Inc. has entered into an agreement to acquire the parent company of Arrowhead General Insurance Agency Inc. from Spectrum Equity Investors, JMI Equity and a management equity holder group. The $395-million purchase is expected to close sometime this month.

The purchase price is $395 million, subject to adjustments for Arrowhead's working capital, debt and net tax operating losses. An additional payment of up to $5 million may be made three years after the closing, depending on Arrowhead's earnings.

Arrowhead is a national insurance program manager and one of the largest managing general agents in the property and casualty insurance industry. Arrowhead, its subsidiary American Claims Management Inc. — a third-party claims administrator — and other subsidiaries, are expected to have 2011 net revenues of $105 million.