Private equity firms GTCR and Apax Partners have agreed to sell insurance broker AssuredPartners to Arthur J Gallagher & Co in a $13.45bn all-cash deal, making it one of the largest-ever transactions in the insurance brokerage sector, according to a report by Reuters.
Founded in 2011 through a partnership between GTCR and industry veteran Jim Henderson, AssuredPartners rapidly scaled its operations through a combination of strategic acquisitions and organic growth.
GTCR initially owned AssuredPartners from its inception until 2015, when it sold the company to another private equity giant, Apax Partners. Under Apax’s stewardship, AssuredPartners continued to expand, focusing on distributing insurance across property and casualty, commercial, employee benefits, and personal lines.
In 2019, GTCR led an investor group to reacquire AssuredPartners, with Apax retaining a minority stake. The partnership injected fresh capital and strategic direction into the company, enabling it to achieve $2.9bn in adjusted revenue for the 12 months ending 30 September, 2024.
The acquisition is a pivotal move for Gallagher as it strengthens its position in middle-market insurance, catering to businesses generating annual revenue between $10m and $1bn. The deal bolsters Gallagher’s offerings in specialised segments like transportation, energy, healthcare, and government contractors, while expanding its footprint in the UK and Ireland.
Gallagher joins competitors including Aon and Marsh McLennan, who have recently completed billion-dollar acquisitions to capitalise on the growing demand for middle-market insurance solutions.
Gallagher plans to finance the acquisition with a mix of cash, debt, and equity, supported by an $8.5bn stock offering and a $13.45bn short-term loan. The transaction is expected to close in Q1 2025 and deliver a double-digit boost to Gallagher’s adjusted profits.
