With 40 employees and revenue of approximately $5 million, Talbot Financial provides a broad range of financial services to banks and financial institutions.

“We are greatly encouraged by the opportunity to acquire the business we have been managing and pursue new growth opportunities in our markets,” said John Brackett, president of Talbot Financial, in a statement.

Martin P. Hughes, chairman and chief executive officer of Hub International, said the sale of the specialty hub will not have a significant impact on Hub's growth opportunities or strategies. He noted that Talbot Financial is a specialty hub with relatively little cross-selling or other collaborative opportunities with Hub's other brokerages.

A company spokesman said Talbot Financial differs from the rest of Talbot and Hub in that Talbot Financial specializes in selling securities, annuities and other investment vehicles, unlike the insurance brokerage firm. He said the sale would not have a significant impact on the payout from earnings to Talbot management.

As part of the deal to purchase Talbot from Safeco, Hub said it expects to pay between $52 million and $55 million to Talbot management over a three-year period under the performance payment agreement or earnout.

Hub paid $16.4 million in cash to 70 employees in September, and has the option to pay the employees in cash or common shares for the balance of the agreement.

Investors appeared to be reacting positively to the news, as the stock rose 40 cents to a high of $26.48 a share, but dropped back to $26.21 by mid-day.