Arthur J. Gallagher & Co. (AJG), a leading insurance firm, announced on Monday its agreement to acquire the stock of AssuredPartners' parent company from GTCR and funds advised by Apax Partners LLP for a total gross consideration of $13.45 billion.
After accounting for an estimated deferred tax asset of $1 billion, the net consideration aligns at approximately $12.45 billion.
The transaction, expected to conclude in the first quarter of 2025, will be funded through a strategic blend of long-term debt, short-term borrowings, available cash, and common equity.
AJG highlighted the financial benefits of this acquisition, projecting a double-digit increase in adjusted earnings per share, bolstered by anticipated synergies.
Post-acquisition, AJG anticipates achieving around $160 million in synergies and incurring integration costs close to $500 million, including $200 million in non-cash retention awards, over a span of three years.
CEO Patrick Gallagher, Jr. remarked, "AssuredPartners' entrepreneurial drive, extensive U.S. presence, and focus on the middle-market make them an exemplary partner for this merger with Gallagher."
