Howden Buys M&A Insurance Broker Atlantic Group in US Expansion

Core Viewpoint - Howden, a UK insurance broker, has agreed to acquire Atlantic Group, a specialist in M&A protection, as part of its strategy to expand rapidly in the US market [1][5]. Group 1: Acquisition Details - The deal values Atlantic Group at over $500 million, with its founders reinvesting a substantial portion of their equity to become shareholders of Howden [2]. - Atlantic Group, founded in 2017, has over 110 employees and is based in New York [2][3]. Group 2: Strategic Goals - The acquisition aims to create a "global powerhouse" to attract business from leading private equity firms and their portfolio companies [4]. - Howden is already the largest transaction liability insurance broker outside the US and seeks to enhance its presence to compete with major global brokers like Marsh & McLennan, Aon, and Willis Towers Watson [3][5]. Group 3: Market Context - The demand for M&A protection has increased over the past decade, driven by significant deal-making activity among buyout firms, supported by low interest rates [5]. - M&A protection helps sellers receive more proceeds upfront while providing buyers with recourse [5]. Group 4: Company Background - Howden is owned by 5,300 employee-shareholders and private equity firms, with its equity valued at £10 billion ($13.4 billion) in 2024 [8]. - The company's enterprise value, including debt, is £20 billion [8]. - Howden has been considered a candidate for an initial public offering (IPO), with plans to complete it by 2030 [9].