Blackstone Group signed a deal to merge Alliant Insurance Services, a medium-sized US insurance brokerage. Terms of the deal were not disclosed, but insider discloses that Blackstone valued it near $1.1 billion. Blackstone and Alliant said in a news release that they expect the deal to close in 75 days.
Merger will link one of the largest privately held brokers in the country to Blackstone, a private-equity giant, just nine months after Alliant announced plans to buy the US operations of London-based Jardine Lloyd Thompson for $100 million.
Tom Corbett, Chairman and CEO of Alliant said,
We are honored to have the opportunity to partner with Blackstone. This is an exceptional opportunity for our company, our clients and our employees. Blackstone’s financial resources and commitment to work strategically with management teams will enable our firm to continue to expand
For Blackstone, which typically eyes on the big company with the potential of progress, the Alliant buyout is a small transaction. But the firm allured with Alliant’s “platform,” and hopeful for its steady growth in the near future. Giant is also expecting the lucrative bounce in insurance brokerages business.
Blackstone’s MD Chinh Chu said
Alliant is an attractive platform due to its market leadership in its core segments (and) superior growth prospects
Blackstone asserts that the insurance brokerage market is fragmented, with small, medium and large companies spread throughout the United States and it could be turned into a more profitable by linking all small units into one and possibly derived huge money out of it.
Alliant is one of the largest U.S. insurance brokerage operations, which provides insurance and employee benefits products to more than 20,000 commercial clients nationwide.
Alliant distributes specialty-oriented products to public entities, law firms, real estate and other industry groups. With the transaction company will have a wider area and more customers to get benefit out from its industry specialization, client service, and a team-based approach.
Image: nyce
Via: Reuters
