Howden reported close to $10bn Risk Strategies deal, $30bn IPO on the cards

Global insurance and reinsurance broker Howden is reportedly nearing a $10 billion binding agreement to acquire Risk Strategies, a move that could set the stage for a future stock market flotation valuing the company at over $30 billion, as per Sky News.

Readers may recall that Bloomberg had previously reported discussions regarding the acquisition were already in progress.

Citing banking sources, Sky News has now suggested that the purchase price would be financed in part by a share sale that could be worth in the region of $4 billion.

Mubadala, the Abu Dhabi-based sovereign investment fund, and Hg Capital, an existing Howden shareholder, would also reportedly inject roughly $2 billion each of equity into Howden.

Sky News noted that the new equity would be invested in Howden at a valuation of approximately $20 billion, implying an aggregate valuation for the combined group of around $30 billion.

Barclays and Morgan Stanley are said to be advising Howden in the discussions, while Evercore is said to be acting for Risk Strategies and its investment firm backer Kelso.

This potential acquisition underscores the ongoing trend of consolidation within the insurance brokerage sector, as firms seek scale and expanded capabilities to remain competitive in a rapidly evolving market.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.