Today, Arthur J. Gallagher & Co. announced it will acquire insurance broker AssuredPartners in an all-cash deal worth $13.45 billion. Once completed, this transaction will be the largest sale of a U.S. insurance broker to a strategic acquirer in the history of the insurance industry.

The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals and customary closing conditions. Gallagher expects to finance the transaction using a combination of long-term debt, short-term borrowings, free cash and common equity. Under the agreement, Gallagher will acquire the stock of AssuredPartners' parent company from GTCR and funds advised by Apax Partners LLP for gross consideration of $13.45 billion, representing a pro forma EBITDAC— earnings before interest, taxes, depreciation, amortization and coronavirus—multiple of 14.3x.

Gallagher, 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.

Gallagher's acquisition of AssuredPartners strengthens its U.S. middle-market property & casualty and employee benefits focus, leveraging AssuredPartners' expertise, data capabilities and diverse product offerings.

The deal enhances Gallagher's niche practice capabilities in transportation, energy, healthcare and public entities while expanding its tuck-in mergers & acquisitions strategy. It also creates new opportunities for Gallagher's wholesale, reinsurance and claims management businesses.

"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., chairman and CEO of Gallagher. “By further leveraging our deep industry verticals, investments in data and analytics, access to specialty products, our common systems and standardized service model, together we can provide even more value to clients and further position Gallagher for future growth."

Based in Orlando, Florida, AssuredPartners is the 11th 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 p&c and employee benefits insurance brokerage services, to commercial enterprises, public institutions and high-net worth individuals.

"This marks a significant milestone in AssuredPartners' journey, showcasing the outstanding business we've built and strong growth we've experienced in just over a decade," said Randy Larsen, CEO of AssuredPartners. “With Gallagher, we 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. I am excited for our future together."

In September, Marsh McLennan announced a deal to acquire McGriff Insurance Services for $7.75 billion. Marsh McLennan is currently the biggest broker in the U.S. with $22.7 billion in revenue in 2023.

Will Jones is IA editor-in-chief.