Novatae acquires MarketScout
MGA and wholesale insurance distributor Novatae Risk Group has acquired MarketScout Corporation, a managing general agent and wholesale insurance broker located in Dallas, on November 1, 2022. MarketScout specializes in private client solutions, health care, fine art, workers compensation and many specialty areas and programs. Terms of the transaction were not disclosed.
Richard Kerr, MarketScout’s Founder and CEO, has been named as chief executive officer of Novatae effective immediately. Steve Cook, who has been Novatae’s acting chief executive officer as well as the firm’s chief operating officer for the past six months, will continue as chief operating officer.
Kerr has held leadership roles in the insurance distributions space for more than 30 years. He founded MarketScout in 2000 as the holding company for MarketScout Wholesale, the MarketScout Exchange, MarketScout Underwriters, MarketScout InsurTech Ventures and the MarketScout Incubator. Prior to MarketScout, Kerr was the chief executive officer of Lambert Fenchurch US, and before that he was the President of Sedgwick.
“We are thrilled to have MarketScout join the Novatae team and to have Richard take the reins as chief executive officer. Richard’s extensive background and business development skills will benefit Novatae with strengthening partnerships, developing strategic alliances and expanding the firm’s product and service offering for its broker partners and their clients.” – Rich Eknoian, CEO of World Insurance Associates LLC, parent company to Novatae.
“I am delighted to have MarketScout join Novatae and to lead the Novatae team. Our product offering, commitment to service excellence, and collaborative culture and sense of community are synergistic with Novatae and will prove to be a great fit. Novatae is a progressive, technology-enabled MGA and wholesale firm that will no doubt disrupt the industry. We are going places and I am excited to bring this opportunity to our partners and clients.” – Richard Kerr, CEO of MarketScout.
Giordano Halleran Ciesla provided legal counsel to Novatae, and Alvarez and Marsal advised them on the transaction. LSS provided legal counsel to MarketScout, and Dowling Hales advised them on the transaction. No other advisors, diligence firms or legal counsel were disclosed.