Howden Nears Major Acquisition Deal
Global insurance and reinsurance broker Howden is reportedly on the brink of securing a $10 billion agreement to acquire Risk Strategies. This strategic move could potentially pave the way for an eventual stock market flotation that might value the company at over $30 billion, according to Sky News.
Earlier, Bloomberg had reported that discussions about the acquisition were already underway. Now, sources from the banking sector suggest that the purchase price would partly be funded through a share sale, potentially valued at around $4 billion.
The Abu Dhabi-based sovereign investment fund Mubadala and Hg Capital, an existing shareholder in Howden, are reportedly set to contribute approximately $2 billion each in equity into Howden.
Sky News stated that the new equity would be invested in Howden at a valuation of about $20 billion, indicating a combined group valuation of roughly $30 billion.
- Advisors: Barclays and Morgan Stanley are believed to be advising Howden in these proceedings, while Evercore is reportedly representing Risk Strategies and its backing investment firm, Kelso.
This possible acquisition highlights the ongoing trend of consolidation within the insurance brokerage industry, as companies aim to enhance their scale and capabilities to stay competitive in an ever-evolving market landscape.
