M&A
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The business has ~$200mn of Ebitda, pointing to a likely multi-billion enterprise value.
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The vehicle will give the legacy carrier a US platform.
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Paragon co-CEOs James Kalbassi and Tara Falk will become Ardonagh shareholders.
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The buyer intends to fund the transaction with approximately 50% equity and 50% debt.
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The $15.5bn price tag equates to around 18x the company’s 2023 core Ebitda.
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The Insurance Insider US news team runs you through the past week’s key M&A deals.
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The business consists of the workers’ compensation book and auto casualty bill review solutions.
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The consideration in this deal will also include $2.2mn of Ryan Specialty Class A common stock.
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AJ Gallagher had also shown an interest in acquiring the Australian retailer.
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President Tim Turner noted two pricing trends: property “stabilization” and casualty “acceleration”.
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This was Gallagher’s largest Q1 deal, followed by $66.6mn for Ericson Insurance.
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The discussions come as the region has seen increased M&A activity in recent years.
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The 100% equity award will vest in full after five years.
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Avoiding an antitrust fight aids execution, but creates uncomfortable optics around the multiple paid.
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The Insurance Insider US news team runs you through the past week’s key M&A deals.
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Gallagher expects "little impact" from the FTC’s non-compete ban on the firm’s M&A strategy.
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Aon will provide further updates on NFP and deal financials, on its earnings call tomorrow.
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The carrier will reassess the market in the fourth quarter, or early in 2025.
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The financing was oversubscribed, with strong demand from new and existing lenders.
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The transaction value represents approximately 5.9x of its 2023 revenue and 28x net income.
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This marks the fifth consecutive quarter of deal volume below the long-term trend line.
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The deal cleared a major antitrust hurdle two months ago.
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The Insurance Insider US news team runs you through the key M&A deals from the past week.
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Sources said Piper Sandler will run the auction for the CIVC-backed firm.