Broker Network is planning to acquire brokers, according to market sources.

The network is close to completing a deal which means that Towergate will retain 19.9% of Broker Network’s shares.

Towergate, which is selling a majority stake in Broker Network to Highbridge for £46m, has put acquisitions on hold to concentrate on restructuring and integration.

Under the terms of the deal there will be no Towergate involvement in the day-to-day management of the business.

Insurance Times understands the deal will free Broker Network up to make acquisitions.

At the Insurance Times Insuring SMEs event yesterday delegates were told that of the 2,800 brokers who are under £5m of gross written premium, 67% of them are over 60.

Ataraxia Broking chief executive Stuart Randall said: “Succession issue is one of demographics. The baby boom generation is in the zone of wanting to retire or consider retirement options.”

A Broker Network spokesperson said: “As a matter of course, Broker Network does not comment on rumour or speculation within the market.”