Apax Funds to Sell Minority Stake in AssuredPartners to Arthur J. Gallagher & Co.

Rhea-AI Summary

Arthur J. Gallagher & Co. (AJG) has agreed to acquire Apax Partners' minority stake in AssuredPartners in a $13.45 billion all-cash transaction. AssuredPartners, founded in 2011, is one of the largest insurance brokers in the United States, operating through approximately 400 offices across the U.S., UK, and Ireland with 10,900 employees.

During Apax Funds' nine-year ownership, AssuredPartners completed around 400 acquisitions, including Keenan & Associates, while investing in operational improvements such as technology, salesforce, and infrastructure capabilities. The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals.

Positive

• All-cash transaction valued at $13.45 billion demonstrates strong financial position
• Acquisition expands AJG's market presence with 400 additional offices across US, UK, and Ireland
• Adds 10,900 employees to AJG's workforce
• Integration brings proven track record of successful M&A execution (400 acquisitions)

Negative

• Large cash outlay of $13.45 billion may impact short-term liquidity
• Transaction subject to regulatory approvals, introducing closing uncertainty
• Integration risks associated with large-scale acquisition

Insights

Financial Analyst

This $13.45 billion acquisition represents a significant strategic move for Arthur J. Gallagher, substantially expanding its market presence and competitive position. AssuredPartners brings approximately 400 offices across the U.S., UK and Ireland, along with 10,900 employees, significantly boosting AJG's operational scale. The deal's all-cash structure suggests strong financial confidence, though it will impact AJG's balance sheet. The acquisition particularly strengthens AJG's specialty segment capabilities and adds valuable technology infrastructure. With AssuredPartners' track record of completing about 400 acquisitions during Apax's ownership, this deal demonstrates strong execution capabilities in M&A integration. The timing aligns with industry consolidation trends, potentially providing AJG with enhanced market leverage and improved economies of scale.

Market Research Analyst

This acquisition positions AJG to capitalize on the ongoing consolidation trend in the insurance brokerage sector. AssuredPartners' strong presence in commercial property and casualty, specialty lines and employee benefits complements AJG's existing portfolio and enhances its competitive edge against other major brokers. The deal's timing is strategic, as the insurance brokerage market continues to evolve with increasing demand for comprehensive risk management solutions. The combination of AssuredPartners' proven M&A execution capabilities with AJG's established market presence creates significant potential for continued growth and market share expansion. The transaction's expected completion in Q1 2025 allows sufficient time for regulatory approval while maintaining momentum in the integration planning process.

NEW YORK, Dec. 9, 2024 /PRNewswire/ -- Funds advised by Apax Partners LLP ("Apax"), a leading global private equity advisory firm, today announced that they have entered into a definitive agreement to sell their minority stake in AssuredPartners ("the Company"), a premier global insurance brokerage firm, to Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, as part of a $13.45 billion all-cash transaction. 

Founded in 2011, AssuredPartners is today one of the largest insurance brokers in the United States, with client capabilities across commercial property and casualty, specialty lines, risk management, employee benefits and personal lines.  AssuredPartners' 10,900 colleagues serve a wide range of customers through approximately 400 offices located across the U.S., the United Kingdom and Ireland. 

Over the course of nine years, Apax closely supported the Company's growth into a national leader in insurance brokerage. During Apax Funds' ownership, AssuredPartners expanded rapidly, completing c.400 acquisitions as it implemented its strategic M&A program and scaling its higher-growth specialty segment through the acquisition of Keenan & Associates. The Funds bolstered AssuredPartners' organic growth and profitability by investing in operational improvements, including technology, salesforce, and infrastructure capabilities, and supported the Company in recruiting key talent along the way.

Ashish Karandikar, Partner at Apax, said: "We are proud of Apax's nine-year partnership with the AssuredPartners team, including current Executive Chairman, Jim Henderson, and CEO, Randy Larsen. During this time, we leveraged our experience in the insurance brokerage space and other capabilities to support the Company's execution of a well-defined growth strategy. Jim, Randy and the AssuredPartners team have built a world-class insurance services franchise, exceeding even our grandest expectations set nine years ago. We look forward to watching as the team continues to thrive as part of the Gallagher family of professionals, with whom they share a client-first mindset and entrepreneurial spirit."

Apax Funds have a long history of investing in insurance distribution through past and current investments, including Hub International, AssuredPartners, PIB Group, and Oncourse Home Solutions. The Funds originally acquired a majority interest in AssuredPartners from GTCR in 2015 and later partnered with GTCR to recapitalize the Company in 2019.

Jim Henderson, Executive Chairman at AssuredPartners, said: "The Apax team's experience in insurance distribution, thoughtful collaboration, and deep partnership over the past nine years has been fundamental to our success and is key to where we stand today. Gallagher is a premier leader in insurance brokerage and, together, I believe we will be even more successful offering clients best-in-class capabilities with industry-leading depth and offerings."

Randy Larsen, CEO of AssuredPartners, said: "We are proud of our partnership with the Apax team and are grateful for their support over the last nine years. Today's news is the culmination of a tremendous effort on the part of the entire AssuredPartners team and we are excited about the future of the business."

The transaction, which is subject to regulatory approvals and customary closing conductions, is expected to close during the first quarter of 2025. Additional information on the transaction can be found on the Arthur J. Gallagher website at www.ajg.com.

About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

About AssuredPartners
Based in Orlando, Florida, AssuredPartners is a global front-runner in the insurance brokerage landscape, with special expertise in industry-specific insurance solutions for both businesses and consumers. It offers a comprehensive range of services, including commercial insurance, risk management, and employee benefits. As strategic advisors in the insurance domain, its unparalleled expertise empowers it to deliver tailor-made solutions designed to meet the unique needs of our clients. With a team of over 10,000 professionals, it serves clients from strategically located offices across North America, England, Ireland, Belgium, and Scotland. Committed to building strong, long-lasting relationships, we foster an environment of trust, transparency, and mutual respect with our partners. This ethos is encapsulated in its guiding principle: Power through Partnership. For further information, please visit www.assuredpartners.com.

About Apax Partners
Apax Partners LLP is a leading global private equity advisory firm. For over 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of almost $80 billion. The Apax Funds invest in companies across three global sectors of Tech, Services, and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com. Apax is authorized and regulated by the Financial Conduct Authority in the UK.

Media Contact:

Todd Fogarty, Kekst CNC
Todd.fogarty@kekstcnc.com
+1 212 521 4854

Gill Corish, Apax
Gill.corish@apax.com
+44 207 872 6480

 

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SOURCE Apax Partners LLP

FAQ

How much is AJG paying for AssuredPartners?

Arthur J. Gallagher & Co. (AJG) is acquiring AssuredPartners in a $13.45 billion all-cash transaction.

When will AJG's acquisition of AssuredPartners close?

The transaction is expected to close during the first quarter of 2025, subject to regulatory approvals and customary closing conditions.

How many offices and employees will AJG gain from AssuredPartners?

AJG will gain approximately 400 offices across the U.S., UK, and Ireland, along with 10,900 employees from AssuredPartners.

How many acquisitions did AssuredPartners complete under Apax ownership?

AssuredPartners completed approximately 400 acquisitions during Apax Funds' nine-year ownership period.