Glasgow-based Giles Insurance Brokers has sold 13% of its shares to institutions in a deal that puts an enterprise value of £130m on the business and delivers windfalls averaging £3500 to its staff.

Private equity house Gresham is lifting its shareholding by 6.5% to just over 40% while Giles' major insurance partner, Norwich Union, is also taking a 6.5% stake, raising some £10.5m for management and employees who will still hold more than 50%.

Chris Giles, who led a management buy-out which valued the business at £45m only 14 months ago, will retain some 22% of the shares after banking almost £3.5m.

He commented: "I am not embarrassed about that, all my staff are doing pretty well out of this." Staff will receive a special dividend from the employee benefit trust, with the biggest holdings yielding six-figure sums and the smallest a few hundred pounds, he said.

Giles said he was still aiming to float the business, but only if it could at least double in size to a £250m value over the next 18 months. He said several acquisitions were in the offing over the next few weeks, following the four deals already done this year.

He said: "The market-place is buoyant and the sector is the fastest-consolidating sector in finance My feeling is that some of the medium-sized consolidators need to get together to get ourselves to a £400m to £500m size and take on the big acquirers."

The company said that although the move strengthened Giles' relationship with Norwich Union, it would have no impact on the broker's independent status. Norwich Union will, however, take a seat on the board.

Already this year, Giles has acquired Wigan-based broker Kerwin Smith, and three Essex-based agencies. Giles last year generated sales of £31m with earnings before interest, tax, depreciation and amortisation of £9m.