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Arthur J. Gallagher this morning said it has entered into an agreement to acquire AssuredPartners for $13.45 billion cash to expand its reach in the U.S. middle-market property/casualty and employee benefits space.

“We have held in high regard the fast-growing AssuredPartners franchise since its founding in 2011. AssuredPartners’ entrepreneurial spirit, broad U.S. footprint and middle-market focus make them an ideal merger partner for Gallagher,” said J. Patrick Gallagher, Jr., CEO.

He added that Orlando, Florida-based AssuredPartners’ 10,900 employees will be welcomed to Gallagher. Commercial organizations, public entities and individuals are served by about 400 offices in the U.S., the U.K. and Ireland. Adjusted revenue over the last year as of Sept. 30 was about $2.9 billion.

Gallagher said the acquisition increases its potential in multiple niche practice groups such as transportation, energy, healthcare, government contractors and public entity.

Randy Larsen, CEO of AssuredPartners, said the acquisition by Gallagher will “bring together not only unparalleled global resources and expert insights but also a team of exceptional employees whose expertise and dedication have been the driving force behind our success.”

AssuredPartners ranked No. 5 in Å˽ðÁ«´«Ã½Ó³»­ Journal‘s 2024 Top 100 Independent P/C Agencies list based on P/C revenue. of the world’s biggest insurance brokers put AssuredPartners in 14th based on 2023 total revenue. Arthur J. Gallagher ranked third on the list, behind March McLennan and Aon.

With today’s announcement, Gallagher follows Marsh McLennan and Aon in making recent deals to tap the middle market. In April, Aon completed a $13 billion acquisition of middle-market P/C broker NFP. Last month, Marsh McLennan completed the purchase of McGriff Å˽ðÁ«´«Ã½Ó³»­ Services for $7.75 billion.

AssuredPartners’ private-equity ownership GTCR and Apax Partners were reportedly looking for partners for a full or partial sale of the brokerage for several months. Chicago’s GTCR said Gallagher’s buy of AssuredPartners is the “largest sale of a U.S. insurance broker to a strategic acquiror in the history of the industry.”

AssuredPartners had been an active M&A participant over the last several years – most recently with 17 transactions year-to-date as of Sept. 30, according to investment banking and financial consulting firm OPTIS Partners. The broker’s buying pace had slowed a bit in 2022 and 2023 following 32 transactions in 2021.

The Gallagher-AssuredPartners deal is expected to close during the first quarter 2025, pending regulatory approvals.

Gallagher said the deal’s net consideration is about $12.45 billion after a deferred tax asset. It expects to finance the purchase with long-term debt, short-term borrowings, cash, and equity.

Topics Mergers & Acquisitions Trends Commercial Lines Business Å˽ðÁ«´«Ã½Ó³»­ A.J. Gallagher