Synex Business Performance (Synex) has acquired ZLC Employee Benefits Solutions (ZLC EBS), the employee benefits division of ZLC Financial, a boutique financial services firm based in Vancouver, British Columbia. Led by Garry Zlotnik, ZLC Financial remains independent.
This transaction, which Synex calls a partnership, is the largest to date for Synex Group Solutions. The addition of ZLC Employee Benefits Solutions contributes more than $130 million in premium volume per year, Synex says.
“ZLC EBS is one of the fastest-growing employee benefits firms in Vancouver and we are honoured to be part of its success going forward. It’s our mission to support the continued growth of the business and to leverage new opportunities and synergies created by our combined high-performing team,” said Yan Charbonneau, President and Chief Vision Officer (CVO) of Synex Business Performance, in the press release announcing the transaction.
Charbonneau told Insurance Portal that Synex is becoming a majority shareholder in ZLC EBS. Not only does this transaction mark his firm’s entry into British Columbia, but it “propels Synex Group Solutions’ premium volume past the $200 million mark, to $220 million,” he says.
Dan Eisner, Vice President and Benefits Advisor at ZLC Financial at the time of the transaction, will lead ZLC EBS, Synex's President and CVO continues, adding that other members of that firm will eventually become minority shareholders.
Cross-selling
By acquiring ZLC EBS, a firm that serves British Columbia, Manitoba, Alberta and Ontario, Synex is consolidating its position as a major player on the West Coast of Canada and across the country. “We're gaining a pretty significant sales force in new areas for us. Now we're really present in Canada from coast to coast,” he says.
The transaction also allows the Charbonneau to strengthen relationships with Synex's other P&C divisions in Western Canada. He repeated his commitment to his strategy of acquiring firms in both disciplines in order to drive cross-selling between group insurance and P&C insurance.
“We don't have a P&C firm in B.C. yet, but it's our goal to get a foothold there,” Charbonneau says. For now, he is counting on partner members of the Canadian Broker Network, an alliance of independent P&C insurance firms.
Synergy with the vendor
Referrals will also come from ZLC Financial, active in individual life insurance and wealth management. “ZLC financial will continue to work in partnership with ZLC EBS to assist our clientele with group benefit solutions. Our advisors are committed to supporting and growing ZLC EBS now and in the future,” says ZLC CEO Garry Zlotnik.
The advisory group Sequeira Partners facilitated the transaction by bringing the two partners together. Led by Kellie Manchester, the firm specializes in mergers and acquisitions consulting and corporate finance.
