Traverse City’s Hagerty Completes Acquisition of Broad Arrow Group for $64.8M

Hagerty, an automotive lifestyle brand and specialty insurance provider based in Traverse City, announced it has entered into a definitive agreement to acquire all outstanding shares of Broad Arrow Group for $64.8 million.
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Hagerty has acquired the outstanding shares of Broad Arrow Group, which it acquired a 40% equity stake of earlier this year. // Courtesy of Broad Arrow Group
Hagerty has acquired the outstanding shares of Broad Arrow Group, which it acquired a 40% equity stake of earlier this year. // Courtesy of Broad Arrow Group

Hagerty, an automotive lifestyle brand and specialty insurance provider based in Traverse City, announced it has entered into a definitive agreement to acquire all outstanding shares of Broad Arrow Group for $64.8 million.

Broad Arrow Group specializes in the transactional segments of the collector car market. Earlier this year, Hagerty acquired approximately 40 percent equity ownership in Broad Arrow as a centerpiece of its automotive marketplace strategy, designed to provide consumers new trust-based platforms for buying, selling, and financing collectible cars.

“In addition to being trusted experts in their field, the Broad Arrow Group team shares our ethos of excellence when it comes to customer experience, so we are a natural fit,” says McKeel Hagerty, CEO of Hagerty. “We expect our additional investment in Broad Arrow to enhance our growth and profitability over time, as we intend to rapidly scale this part of our overall business.”

The live and online collector car auction industry, Hagerty noted, is a substantial financial opportunity for the company. In the last 12 months ending June 30, 2022, Hagerty saw its members buy and sell more than 300,000 collectible cars for nearly $12 billion in value.

The Broad Arrow acquisition will provide immediate growth opportunities in a compelling adjacency to the Hagerty ecosystem of products and services serving the vast collectible car market and enthusiasts around the world.

Hagerty Marketplace features an easy-to-use proprietary automotive classified platform that connects buyers and sellers. Marketplace also provides access to Hagerty’s portfolio of automotive-focused offerings, including Hagerty Media and Hagerty Valuation Tools. In April 2022, Hagerty also acquired Speed Digital, a provider of cloud-based technology solutions for dealers, auction houses, collectors, and enthusiasts.

Broad Arrow will host its first live auction in Monterey, Calif., on Aug. 18 in conjunction with Hagerty’s Motorlux event (formerly McCall’s Motorworks Revival) located at the Monterey Jet Center. The auction will feature 90 exceptional motorcars within the grounds to kick off Monterey Car Week.

“After working together for a few months, we saw the compelling value proposition for the two organizations to fully integrate,” says Kenneth Ahn, CEO of Broad Arrow. “We look forward to serving the collectible car community in the years to come as a part of Hagerty’s comprehensive ecosystem of products and services.”

Broad Arrow founders and industry veterans Ahn, Alain Squindo, Ian Kelleher, Donnie Gould, Barney Ruprecht, Alexander Weaver, David Swig, Karsten Le Blanc, Ramsey Potts, Madeline Baker, and Mike Mortorano, along with their colleagues, will become a part of the Hagerty team as part of the deal, and Ahn will continue to lead the team as president of Hagerty Marketplace.

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