Howden Buys M&A Insurance Broker Atlantic Group in US Expansion
UK insurance broker Howden agreed to buy M&A protection specialist Atlantic Group as the City firm presses ahead with a rapid expansion in the key US market.
Atlantic Group’s founders — Richard French, Joe O’Brien and David Haigh — will reinvest a “substantial portion” of their equity to become shareholders of Howden, according to a statement Monday. The deal values Atlantic Group, which was founded in 2017 and has over 110 staffers, at more than $500 million, a person familiar with the matter said, asking not to be identified as the information is private.
New York-based Atlantic helps companies and private equity firms buy protection against breaches of warranties as well as tax and credit risks related to M&A in the US. Howden is already the largest transaction liability insurance broker outside the country.
The combination aims to create a “global powerhouse” that will seek to win business from the “world’s leading private equity houses and their portfolio companies,” Howden Founder and Chief Executive Officer David Howden said in the statement. Barclays Plc acted as financial adviser to Howden, while Piper Sandler advised Atlantic Group.
Take-up of M&A protection has grown over the past decade, a period that saw rampant dealmaking by buyout firms, fueled by low interest rates. The protection can help sellers receive more of their proceeds upfront, while offering buyers recourse.
The deal for Atlantic is Howden’s latest push to boost its US presence as it looks to rival major global brokers Marsh & McLennan Cos., Aon Plc, Arthur J. Gallagher & Co. and Willis Towers Watson Plc.
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To gain a foothold in the US retail broking market, Howden held talks to acquire Risk Strategies early last year before Howden eventually opted to launch its US retail operations without a major acquisition, hiring hundreds of staffers from rivals across the country.
London-based Howden is owned by 5,300 employee-shareholders, PE firms General Atlantic and HgCapital, Canadian pension fund La Caisse and the Howden Foundation. The company’s equity was valued at £10 billion ($13.4 billion) in 2024, ahead of an internal share sale. The firm’s enterprise value, which includes debt, was £20 billion.
Howden has long been considered a candidate for an initial public offering. David Howden, 62, told The Times newspaper in July that he plans to have completed an IPO by 2030, without committing to a venue.
Photograph: The New York City skyline; photo credit: Michael Nagle/Bloomberg