AUB Group Ltd has made two “strategic” buys to strengthen core business and enhance its ability to leverage technology and target new customer segments.

AUB said in an ASX statement it had bought the remaining share it does not already own in Adelaide-based broker MGA Whittles Group for $140m and gained 40% of insuretech business BizCover for $132m.

AUB’s buy includes the remaining 50.1% of MGA and 100% of Whittles payable by $29.1m in cash on completion and 8.8m fully paid ordinary shares, which would be issued within AUB’s 15% placement capacity by July 31.

The full consideration of its share in BizCover, plus a working capital adjustment estimated at $3m, is payable in cash and will be funded through AUB’s debt facilities.

AUB expected the combined transactions to be earnings-per-share accretive in FY20 and strongly accretive on a full-year pro-forma basis after completion.

Earnings from the two transactions are excluded from the guidance AUB reaffirmed on January 28 of 8-10% growth in adjusted FY20 net profit before tax.