Arthur J. Gallagher & Co (NYSE:AJG)., a global insurance brokerage, risk management, and consulting services firm, announced on Monday that it has entered into a definitive agreement to acquire AssuredPartners from its private equity owners.
The transaction is valued at a gross consideration of $13.45 billion, not accounting for a $1 billion deferred tax asset anticipated to lower the net cost to $12.45 billion.
The acquisition is aimed at bolstering Gallagher’s retail middle-market property and casualty offerings across the United States.
The Rolling Meadows, Illinois-based company plans to finance the deal using a mix of long-term debt, short-term borrowings, available cash, and common equity.
Gallagher anticipates achieving approximately $160 million in synergies and expects to incur integration costs of about $500 million over the coming three years.
The completion of this acquisition is subject to regulatory approvals and is expected to finalize in the first quarter of the following year.
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