An Adelaide company, established in the 1970s, has been bought for more than $140 million

Decades of work have paid off for three Adelaide families in the financial sector.

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Adelaide-based MGA Whittles has been bought out by listed company AUB in a $140 million deal.

The local insurance broker’s owners will be paid $29.1 million in cash and 8.76 million AUB shares at an issue price of $12.65 per share.

MGA Insurance Brokers was founded in 1975 by executive chairman John George, and was originally known as JR George Insurance Services.

Mr George will continue as executive chairman and MGA - the insurance broking arm - and the Whittles strata management arm - will continue to operate under their existing brands and be managed from Adelaide.

“My MGA and Whittles team are proud to have built this iconic and profitable business that now boasts 41 branches and over 550 personnel,’’ Mr George said.

“Selling the MGA Whittles Group in exchange for a significant stake in AUB will allow us to fully leverage our long-term partnership to accelerate the growth of the MGA Whittles group for the benefit of all stakeholders.’’

The deal is for the 51 per cent of the MGA business currently owned by the George, McInerney and Amber families, and all of Whittles.

Mr George said future acquisitions in the insurance sector by AUB would now be folded into the MGA brand, as it was recognised as a market leader.

MGA’s shareholders will now become the largest single shareholder in AUB with more than a 10 per cent stake of the $950 million company.

AUB stock was trading more than 4 per cent higher at $13.36.