Arthur J Gallagher & Co has received a request for additional information related to its Hart-Scott-Rodino (HSR) filing for the proposed acquisition of AssuredPartners Inc.
The company said that a second request for information is a standard part of the regulatory review process for transactions of this nature. The request extends the waiting period under the HSR Act until 30 days after Gallagher has substantially complied. The period may be extended voluntarily by the parties or shortened by the antitrust agency.
Gallagher said it is in the process of responding and expects to complete the transaction in the second half of this year.
The deal with AssuredPartners was initially announced in December 2024. Under the deal, Gallagher will acquire AssuredPartners’ parent company from GTCR and funds advised by Apax Partners.
The net consideration for the transaction, after accounting for a $1 billion deferred tax asset, is about $12.45 billion, representing an EBITDAC multiple of 11.3x after synergies. Gallagher said it plans to fund the deal through a mix of long-term debt, short-term borrowings, free cash and common equity, while maintaining its investment-grade debt rating.
Gallagher chairman and CEO J Patrick Gallagher Jr said that AssuredPartners is “an ideal merger partner for Gallagher” given the company’s “entrepreneurial spirit, broad US footprint and middle-market focus.”
Gallagher also sees opportunities to further leverage the firm’s industry expertise, data analytics and specialty products.
Founded in 2011, AssuredPartners is the 11th largest insurance broker in the US, operating about 400 offices across the US, the UK and Ireland.
Earlier this month, Gallagher landed another big deal when Woodruff Sawyer agreed to be acquired by the company for $1.2 billion. Gallagher outbid interests from WTW and Brown & Brown to acquire the San Francisco-based insurance brokerage.
The acquisition of Woodruff Sawyer is valued at about 4.5 times revenue and 13.6 times EBITDAC, aligning with comparable transactions in the brokerage sector. The addition of Woodruff Sawer will strengthen Gallagher’s presence on the West Coast and expand its ability to serve specialized industries.
