Hub International Limited and Kaye Group Inc. have completed the merger through which Hub has acquired Kaye. Under the terms of the merger agreement, to which a majority of Kaye shareholders have consented, holders of Kaye Group shares are to receive $14 in cash for each share.

Hub now has over 100 offices throughout Canada and the United States, including Baltimore, Boston, Chicago, Cleveland, Dallas, Denver, New York, California, Connecticut and Rhode Island.

Hub International funded the payment of the merger consideration through a combination of its own cash reserves, the sale to Fairfax Financial Holdings Limited which currently owns approximately 43% of Hub International’s outstanding shares of US$35 million principal amount of six year 8.50% subordinate convertible debentures, the sale to Zurich Insurance Company of C$42.5 million principal amount of five year 8.50% subordinate convertible debentures, and bank facilities.

“We are very pleased to have the fine Kaye organization become part of the Hub family. Kaye’s achievements spanning almost 50 years as a property and casualty and benefits broker have been outstanding, and they bring to Hub additional depth of professional talent, innovation and entrepreneurial energy. We expect our combined efforts to produce even greater success,” says Martin P. Hughes, chairman and CEO of Hub International.