Hub to Acquire Operations of Troubled Near North

Hub International Ltd. (TSX: HBG) has signed a proposal to acquire the brokerage assets of Chicago-based Near North National Group. Near North has been in talks to sell off its assets following indictment on federal fraud charges against the company and its former CEO Michael Segal. News of the intended acquisition saw Hub’s share price rise by 10% on a single day’s trading.

Although terms of the intended purchase have not been released, Hub says the acquisition price will be based on future revenues of the acquired assets. The purchase will only proceed after further due diligence.

Originally, Chicago-based private equity firm Frontenac Co. LLC had signed an agreement to purchase most of Near North’s assets, but later withdrew the offer. “The acquisition of Near North would add numerous specialty lines of business to our operations serving a vast number of industries and add to our employee base with the services of an accomplished group of professionals who strive to provide their clients with high-quality, responsive brokerage services,” says Hub CEO Martin Hughes.