Arthur J Gallagher & Co has signed a definitive agreement to acquire AssuredPartners, a leading US-based insurance broker, for US$13.45 billion in an all-cash transaction.
J Patrick Gallagher Jr, chairman and CEO of Arthur J Gallagher & Co, highlighted the strategic benefits of the acquisition, emphasising the compatibility between the two companies.
"We have held in high regard the fast-growing AssuredPartners franchise since its founding in 2011. AssuredPartners' entrepreneurial spirit, broad US footprint, and middle-market focus make them an ideal merger partner for Gallagher," he said.
Gallagher also noted the opportunities to further leverage the firm's industry expertise, data analytics, and specialty products. "I look forward to welcoming the 10,900 AssuredPartners colleagues to our growing Gallagher family of professionals," he said.
AssuredPartners, founded in 2011 by private equity firm GTCR in partnership with Jim Henderson, has grown to become the 11th largest insurance broker in the US. The company operates approximately 400 offices across the US, the UK, and Ireland, offering services in commercial property and casualty, specialty lines, employee benefits, and personal lines.
For the trailing 12 months ended September 30, 2024, AssuredPartners reported revenues of US$2.9 billion and EBITDAC of US$938 million.
The deal, one of the largest acquisitions in the insurance brokerage industry, is expected to close in the first quarter of 2025, subject to regulatory approvals and customary closing conditions.
AssuredPartners CEO Randy Larsen (pictured above) described the acquisition as a pivotal moment for the company.
"This marks a significant milestone in AssuredPartners' journey, showcasing the outstanding business we've built and strong growth we've experienced in just over a decade," Larsen said. He expressed optimism about the opportunities presented by joining Gallagher, stating that the combined resources and expertise would enhance their ability to deliver for clients.
Executive chairman Jim Henderson also reflected on the company’s journey since its founding. "When we started AssuredPartners, I could never have imagined how far we would come. What started as a small team with a big vision has grown into an extraordinary organisation," he said.
Henderson noted the cultural alignment between the two firms, emphasising their shared client-first mindset and entrepreneurial values.
The acquisition also builds on Gallagher’s commitment to expanding its middle-market property and casualty and employee benefits business across the US.
The transaction is expected to deepen Gallagher's niche practice capabilities in sectors such as transportation, energy, healthcare, and government contractors, while also adding scale and expertise in the UK and Ireland.
Under the agreement, Gallagher will acquire AssuredPartners’ parent company from GTCR and funds advised by Apax Partners LLP. The net consideration for the transaction, after accounting for a US$1 billion deferred tax asset, is approximately US$12.45 billion, representing an EBITDAC multiple of 11.3x after synergies.
Gallagher plans to finance the acquisition through a mix of long-term debt, short-term borrowings, free cash, and common equity, while maintaining its investment-grade debt rating.
The firm expects to realise approximately US$160 million in synergies and incur US$500 million in integration costs, including US$200 million in non-cash retention awards, over the next three years.
Ashish Karandikar, partner at Apax, reflected on the firm’s nine-year partnership with AssuredPartners.
"We leveraged our experience in the insurance brokerage space to support the company's execution of a well-defined growth strategy. Jim, Randy, and the team have built a world-class insurance services franchise," he said.
Aaron Cohen, managing director at GTCR, described the collaboration with AssuredPartners as a successful partnership under the firm’s Leaders Strategy, emphasising the strategic vision that enabled AssuredPartners to grow through acquisitions and operational investments.
What are your thoughts on this story? Please feel free to share your comments below.
