GTCR Announces Sale of AssuredPartners to Arthur J. Gallagher & Co. for $13.45 Billion

Rhea-AI Summary

GTCR has announced the sale of AssuredPartners to Arthur J. Gallagher & Co. (NYSE: AJG) for $13.45 billion in an all-cash transaction, marking the largest sale of a U.S. insurance broker to a strategic acquiror. AssuredPartners, the 11th largest insurance broker in the U.S., employs 10,900 professionals across North America and the U.K., providing risk management solutions including property and casualty and employee benefits insurance brokerage services.

Founded in 2011 through GTCR's Leaders Strategy™ partnership with Jim Henderson, AssuredPartners has acquired and integrated over 500 businesses over 13 years. The transaction is expected to close in Q1 2025, subject to regulatory approvals and customary closing conditions.

Positive

• Record-breaking $13.45 billion all-cash acquisition deal
• Strong market position as 11th largest U.S. insurance broker
• Large operational scale with 10,900 professionals
• Successful track record of 500+ business integrations
• Extensive geographic presence across North America and U.K.

Negative

• None.

Insights

Financial Analyst

This $13.45 billion acquisition marks a significant strategic move in the insurance brokerage sector. The all-cash deal represents substantial value creation, positioning AJG to significantly expand its market presence by acquiring the 11th largest U.S. insurance broker. The transaction will add 10,900 professionals and extensive geographical coverage across North America and the U.K. The deal's structure suggests strong confidence in potential synergies and market consolidation benefits. With AssuredPartners' impressive track record of integrating over 500 businesses, this acquisition should accelerate AJG's growth trajectory and enhance its competitive position. The timing aligns with broader industry consolidation trends, potentially offering AJG increased negotiating power with carriers and expanded cross-selling opportunities.

Market Research Analyst

The strategic significance of this acquisition extends beyond its size - it's the largest sale of a U.S. insurance broker to a strategic acquirer in industry history. AssuredPartners' proven M&A integration capabilities and client-first culture complement AJG's existing operations. The deal strengthens AJG's market position in property and casualty insurance, employee benefits and high-net-worth individual services. The expected Q1 2025 closing provides adequate time for regulatory review while maintaining momentum. The all-cash transaction structure demonstrates AJG's strong financial position and conviction in the deal's value proposition. This consolidation could trigger further industry M&A activity as competitors respond to the changing competitive landscape.

Sale is the Culmination of Successful 13-year Relationship Between GTCR and AssuredPartners that Began as a Leaders Strategy™ Partnership with Insurance Industry Veteran Jim Henderson

CHICAGO, Dec. 9, 2024 /PRNewswire/ -- GTCR, a leading private equity firm, announced today that it has signed a definitive agreement to sell AssuredPartners ("Assured" or the "Company"), a leading independent insurance broker, to Arthur J. Gallagher & Co. (NYSE: AJG) ("Gallagher"), a global insurance brokerage, risk management and consulting services firm for $13.45 billion in an all-cash transaction. This transaction is the largest sale of a U.S. insurance broker to a strategic acquiror in the history of the industry.

Based in Orlando, Florida, AssuredPartners is the 11^th largest insurance broker in the U.S. The Company has a team of 10,900 professionals, serving clients from strategically located offices across North America and the U.K. Through Assured's network of agencies, the Company provides a comprehensive suite of risk management solutions, including property and casualty and employee benefits insurance brokerage services, to commercial enterprises, public institutions and high-net worth individuals.

AssuredPartners was founded in 2011 as a GTCR Leaders Strategy™ partnership with 40-year insurance industry veteran Jim Henderson, currently Executive Chairman of the Company. Since that time, Mr. Henderson and the team have rapidly grown the Company through M&A and substantial investment in key talent, operations, technology and product enhancements. Over the past 13 years, the Company has acquired and successfully integrated over 500 businesses, building a national leader in insurance brokerage. GTCR originally sold the Company to Apax Fund VIII in 2015, and GTCR reacquired a majority stake in partnership with Apax Fund IX in 2019. Today, the business is led by Mr. Henderson and CEO Randy Larsen.

"Our collaboration with Jim, Randy and the team at AssuredPartners is a quintessential Leaders Strategy™ partnership, building an outstanding business alongside a world-class executive team," said Aaron Cohen, Managing Director and Head of Financial Services & Technology at GTCR. "When we formed the partnership, the goal was to build a client-first culture at Assured, supported by a centralized best practice approach to technology, go-to-market and strong carrier relationships. Jim, Randy and the entire AssuredPartners team executed the thesis brilliantly, which is what has made the business so successful. We believe that Gallagher, with its strong service-oriented values, complementary business and geographic footprint, is the right home for AssuredPartners to continue on its path to broaden its suite of solutions and further improve client service."

"The sale marks a significant milestone in the Company's journey of building one of the leading insurance brokers behind an ambitious strategy of transformational growth," said David Donnini, Managing Director and Head of Business & Consumer Services at GTCR. "We are incredibly proud of the partnership we developed with Jim and the entire team at AssuredPartners, and the platform that was built over 13 years. The Company has a well-earned reputation for prioritizing culture, collaboration and client service, which has made it a great fit for so many agency partners and allowed Assured to scale at such an impressive pace. We look forward to seeing Assured and Gallagher's continued success."

"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," said Mr. Henderson. "Gallagher is a premier brand and platform 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. We have enjoyed working with GTCR over the past 13 years and, on behalf of the team, I want to thank GTCR for its commitment to our vision and for all of their support along the way."

"GTCR has been a fantastic partner to us as we have grown AssuredPartners into what it is today, and we are excited about our road ahead, benefitting from the innovation and expertise of the talented Gallagher team," added Mr. Larsen.

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

About GTCR

Founded in 1980, GTCR is a leading private equity firm that invests behind The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through organic growth and strategic acquisitions. GTCR is focused on investing in transformative growth in companies in the Business & Consumer Services, Financial Services & Technology, Healthcare and Technology, Media & Telecommunications sectors. Since its inception, GTCR has invested more than $25 billion in over 280 companies, and the firm currently manages $40 billion in equity capital. GTCR is based in Chicago with offices in New York and West Palm Beach. For more information, please visit www.gtcr.com.

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. We offer a comprehensive range of services, including commercial insurance, risk management, and employee benefits. As strategic advisors in the insurance domain, our unparalleled expertise empowers us to deliver tailor-made solutions designed to meet the unique needs of our clients. With a team of over 10,000 professionals, we serve 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 our guiding principle: Power through Partnership. For further information, please visit www.assuredpartners.com.

About Gallagher
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. For more information, visit www.ajg.com.

GTCR Contact
Andrew Johnson
212.835.7042
Andrew.Johnson@gtcr.com

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SOURCE GTCR

FAQ

How much is Arthur J. Gallagher (AJG) paying for AssuredPartners?

Arthur J. Gallagher is paying $13.45 billion in an all-cash transaction for AssuredPartners.

When is the AJG-AssuredPartners acquisition expected to close?

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

How many employees does AssuredPartners have before the AJG acquisition?

AssuredPartners has a team of 10,900 professionals serving clients from offices across North America and the U.K.

How many companies has AssuredPartners acquired before the AJG deal?

AssuredPartners has acquired and successfully integrated over 500 businesses since its founding in 2011.