Aon agrees $17bn USI deal

BY Richard Summerfield

Insurance broker Aon announced on Monday that it had agreed to purchase rival USI Insurance Services from private equity firm KKR in an all-cash deal worth around $17bn.

The transaction was unanimously approved by the boards of directors of both Aon and USI and is expected to close in the fourth quarter of 2026.

Acquiring USI is expected to boost Aon’s adjusted profit in 2028. Aon plans to fund the deal through debt and does not expect near-term share buybacks as it prioritises debt repayment. The deal is expected to deliver $395m in annual run-rate net adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) impact from revenue and cost synergies across the combined middle-market platform and to be accretive to adjusted earnings per share in 2028. The net purchase price represents approximately 14.5x on a synergised trailing 12-month adjusted EBITDA basis, according to Aon.

Following the close of the transaction, Mike Sicard, chairman and chief executive of USI, will serve as president of Aon plc and global chief executive of middle market and join the Aon executive committee.

“In a time of rising complexity and volatility, creating better outcomes for clients across their risk and people challenges requires a combination of capabilities and expertise supported by proprietary data, analytics and technology,” said Greg Case, president and chief executive of Aon. “Through the successful execution of our 3x3 Plan to accelerate our Aon United strategy, we have significantly strengthened our firm to build the industry’s most differentiated model: what we call our context advantage.

“Combining with USI will establish the premier U.S. middle-market platform, deepen our context advantage and position Aon to accelerate organic growth,” he continued. “Building on the success of our acquisition of NFP, USI will substantially enhance our middle-market footprint and expand access for our firm in the E&S segment to deliver content, capabilities and expertise to a broader client base, while enabling client leaders to expand relationships and win new business. Our combined data platform will generate richer insight, advance the development of innovative, AI-driven solutions and expand the universe of insurable risk, while further reinforcing the context advantage that differentiates Aon.”

“Joining Aon represents a truly energising next chapter for our firm and an opportunity to accelerate our momentum as part of the Aon United platform,” said Mr Sicard. “Our firms share strong, one-firm cultures with a deep commitment to working together to bring the best of our capabilities to clients.”

USI, a leading provider of property & casualty, employee benefit, personal risk and retirement solutions for the middle market, is the 10th largest US insurance broker with approximately $3bn in annual revenue and more than 10,500 team members across nearly 200 US offices.

As USI’s largest shareholder, KKR said that it expects to recognise approximately $3.3bn of after-tax proceeds and about $2bn of adjusted net income. Under KKR’s ownership, USI nearly tripled its revenue and made more than 90 acquisitions, according to KKR.

News: Aon strikes $17 billion deal for rival USI as insurance consolidation accelerates

Steadfast to be acquired in $5.5bn buyout

BY Richard Summerfield

Australian insurance broker Steadfast Group has agreed to be acquired by a consortium backed by US investment giant KKR & Co in a deal worth $5.5bn.

Under the terms of the deal, speciality insurance distributor Amwins Group will acquire Steadfast’s underwriting agency operations, while Dragoneer Investment Group will take control of the company’s broking business. Steadfast shareholders will receive ⁠A$6 apiece, representing a nearly 52 percent premium to the stock’s closing price on 9 ​June, the last trading day before the company disclosed a non-binding proposal from ​Dragoneer and Amwins.

Amwins and Dragoneer initially approached Steadfast with proposals of A$5.50 and A$5.83 per share before increasing their offer to A$6 per share in June. KKR subsequently joined the consortium as a co-lead investment partner alongside Dragoneer for Steadfast’s broking operations.

Steadfast’s board of directors has unanimously recommended that shareholders vote in favour of the consortium’s offer, in the absence of a superior proposal and subject to an independent expert concluding the deal is in shareholders’ best interests. The company is ​aiming to implement ⁠the scheme in December, it said in an after-market filing, subject to shareholder, court and regulatory approvals.

“The decision to recommend this offer follows careful consideration by the Board and its advisers,” said Vicki Allen, chair of Steadfast. “The Steadfast Board intends to unanimously recommend that Steadfast shareholders vote in favour of the Scheme, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the Scheme is in the best interests of Steadfast shareholders.”

“I am pleased to support the Scheme Consideration of $6.00, as it recognises the significant value created by Steadfast for its public investors and provides an exciting opportunity for the next phase of our growth,” said Robert Kelly, managing director and chief executive of Steadfast. “With the backing of experienced international investors, we believe Steadfast can strengthen its competitive position, accelerate investment in technology and services, support our independent broker network and create further growth opportunities for the organisation.”

Steadfast operates one of the largest insurance distribution networks in Australia and surrounding markets. The company currently has 414 network brokerages and 31 underwriting agencies, with businesses across Australia, New Zealand, Singapore and the US. The company also provides technology, market access, risk solutions, operational support and equity solutions to insurance brokerage and agency businesses within its network.

News: Australia's Steadfast agrees to $5.5 billion buyout bid by KKR-backed consortium

Madison Air Solutions strikes $5.4bn ebm-papst deal

BY Richard Summerfield

Madison Air Solutions Corporation, a global provider of air quality solutions, has agreed to acquire ebm-papst in a deal worth $5.4bn.

According to a statement announcing the deal, the effective enterprise purchase price is $5bn net of future tax savings. Madison Air intends to fund the transaction through a combination of cash on hand and debt and equity financing. The company expects pro forma net leverage of less than 4.0x at closing, with a target of reducing net leverage to approximately 2.5x on a trailing 12-month basis within two years. The transaction is expected to close around year end, subject to regulatory approvals and satisfaction of customary closing conditions.

The deal is expected to add approximately $30bn to Madison Air’s addressable market and broaden its commercial, aftermarket and services opportunities through a larger installed base, broader customer relationships and expanded channel presence. Operating in approximately 40 countries, ebm-papst serves a diversified global customer base and is expected to generate approximately $2.8bn of revenue and approximately $343m of adjusted earnings before interest, taxes, depreciation and amortisation in 2026.

“We’re excited about the opportunities this acquisition creates for our customers, employees and shareholders as Madison Air continues to expand our ability to deliver Return on Air and strengthen our position in attractive, growing markets,” said Jill Wyant, president and chief executive of Madison Air. “As a longstanding ebm-papst customer, we have a deep appreciation for its integrated airflow technology, custom engineering expertise and talented team, which complement our expertise in mission-critical applications and market reach.

“Fans enable the airflow performance our customers depend on every day,” she continued. “By combining ebm-papst’s differentiated technology with Madison Air’s application expertise, trusted customer relationships and proven operating model, we will help more customers improve uptime, efficiency, compliance and productivity in mission-critical environments.”

Ms Wyant added that the acquisition nearly doubles the company’s addressable market, expands its aftermarket and services opportunities, and strengthens its long-term growth prospects. She also expressed confidence that the combined business will accelerate growth, improve performance and deliver significant long-term value for shareholders.

“Madison Air was founded on the belief that business can be one of the most powerful forces for good, particularly when we help people live safer, healthier and more productive lives through the power of better air,” said Larry Gies, chairman of the board and founder of Madison Air. “Adding ebm-papst to the Madison Air portfolio is a natural extension of that purpose. The Board of Directors and I have tremendous confidence in Jill and her team and believe this combination will make Madison Air a stronger company capable of serving more customers, pursuing a larger opportunity and creating enduring value for many years to come.”

“Since our founding more than six decades ago, ebm-papst has built a reputation on engineering excellence, innovation and earning the trust of our customers,” said Klaus Geiβdörfer, chief executive of ebm-papst. “Madison Air shares that philosophy and has demonstrated a long-term commitment to supporting entrepreneurial businesses. We are excited to join an organization that values our people, our culture and our technology, and we look forward to what we can accomplish together.”

News: Madison Air Solutions to buy German fan maker ebm-papst in $5.4 billion deal

Thoma Bravo acquires Accelerant in $4bn-plus deal

BY Fraser Tennant

In an all-cash transaction that takes it back into private ownership, insurance marketplace Accelerant is to be acquired by US private equity and growth capital firm Thoma Bravo for more than $4bn.

Under the terms of the definitive agreement, shareholders of Atlanta-based Accelerant will receive $20.25 per share in cash, representing a 49 percent premium to Accelerant’s closing share price on 12 August 2026.

Upon completion, and just over a year since its first listing, Accelerant will once again become a private company, and its common shares will no longer be listed nor traded on the New York Stock Exchange.

Altamont Capital Partners, Accelerant’s largest investor, and the company’s founders, intend to retain equity ownership alongside Thoma Bravo, the terms of which will be finalised prior to closing.

Founded in 2018, Accelerant is a data-driven platform that connects specialty insurance underwriters with risk capital providers through advanced analytics, real-time data and transparent underwriting insights. Its platform supports diversified, low-volatility premium performance and scalable capital deployment across cycles.

“Accelerant has been building the preeminent specialty insurance marketplace,” said Jeff Radke, chairman and chief executive of Accelerant. “Returning to private ownership with Thoma Bravo’s technology and software expertise, coupled with its vast financial and strategic resources, will enable us to make investments that further position our unique, data fueled platform to be the rails on which specialty insurance runs.”

The world’s largest software-focused investment firm, Thoma Bravo partners with some of the world’s most sophisticated investors. Over the past 20-plus years, it has acquired or invested in approximately 590 companies, representing more than $320bn of aggregate value.

“As the managing general agent market continues to grow, underwriters are looking for a committed technology-forward partner who can unlock rapid program growth and underwriting innovation,” said A.J. Rohde, senior partner at Thoma Bravo. “We have invested in insurance technology and data businesses for years, and we are excited to work alongside the entire Accelerant team.”

The transaction, which is currently expected to close in the first half of 2027, is subject to customary closing conditions, including approval by Accelerant shareholders and satisfaction of required regulatory approvals.

“Accelerant has built something rare in specialty insurance,” added Matt LoSardo, a principal at Thoma Bravo. “We look forward to partnering with the team to invest behind the technology, data and capital capacity to support Accelerant’s next phase of growth.”

News: Thoma Bravo to take Accelerant private in more than $4 billion deal

GO acquires H&R portfolio in C$6.7bn breakup deal

BY Fraser Tennant

In a deal that creates Canada’s second-largest publicly traded residential real estate investment trust (REIT) by enterprise value, GO Residential REIT and a consortium of buyers – including private equity firm Blackstone – is to acquire Toronto-based H&R REIT for C$6.7bn.

Under the terms of the agreement, H&R unitholders will receive C$4.28 per unit in cash, plus 0.5688 GO REIT unit per H&R unit, representing in total a value of C$12.01 per H&R unit and a 14.5 percent premium to its unaffected closing price on 10 June 2026.

The agreement also includes the assumption of approximately C$550m in H&R debentures and approximately $1.1bn in property-level debt.

Alongside Blackstone Real Estate, the consortium of co-purchasers includes Crestpoint Real Estate Investments, the Public Sector Pension Investment Board and a company controlled by family members of Tom Hofstedter, chief executive of H&R.

“We have built one of the highest-quality luxury residential portfolios in New York City, and this transaction takes that foundation and adds Sunbelt scale, balance sheet strength and earnings growth – transforming GO into one of Canada's largest publicly-traded residential REITs,” said Joshua Gotlib, chief executive of GO Residential REIT. “It will be a platform with a greater opportunity set, and competing for a different category of investor.”

Once complete, the deal will see GO acquire a portfolio of 27 properties and nearly 10,300 suites across seven Sunbelt markets and New York – adding to GO REIT’s 10 properties comprising 3000-plus suites in the New York City area.

“The board has unanimously concluded that this transaction is in the best interests of GO,” said Meyer Orbach, chairman of GO Residential REIT. “It addresses, in a single step, the issues that have limited GO’s valuation – concentration, leverage and scale – while preserving the quality and integrity of the portfolio our team has assembled.”

The transaction is expected to close in Q4 2026, subject to customary closing conditions.

Mr Gotlib concluded: “We are acquiring best-in-class assets at an attractive basis, and we are doing it in a way that makes GO financially stronger and more diverse, consistent with our long-term strategy.”

News: CCanada's H&R REIT agrees to $4.81 billion breakup deal with GO Residential, Blackstone consortium