Howden Nears $10 Billion Acquisition of Risk Strategies
Deal News | Mar 18, 2025 | Re-Insurance News
Global insurance and reinsurance broker Howden is reportedly close to securing a $10 billion agreement to acquire Risk Strategies, aiming for a subsequent IPO that values the company at $30 billion. The acquisition is partially financed by a $4 billion share sale, alongside $2 billion equity injections each by Mubadala and Hg Capital. Howden's valuation is speculated to reach $20 billion, culminating in a $30 billion valuation for the combined group. Advisors in this transaction include Barclays and Morgan Stanley for Howden, with Evercore advising Risk Strategies and its backer, Kelso. This move marks a noteworthy consolidation trend in the insurance brokerage sector.
Sectors
- Insurance Brokerage
- Financial Advisory
- Private Equity
Geography
- United Arab Emirates – Mubadala, the Abu Dhabi-based sovereign investment fund, is involved in the acquisition deal, adding a UAE geographical element to the transaction.
- United Kingdom – Howden is a UK-based company, central to the article as the acquirer in the discussed deal.
- United States – Risk Strategies is a US-based company, identified as the target of the acquisition.
Industry
- Insurance Brokerage – The article focuses on Howden, an insurance and reinsurance broker, acquiring Risk Strategies in a major deal, highlighting trends in consolidation within the sector.
- Financial Advisory – The article mentions advisory roles played by Barclays, Morgan Stanley, and Evercore, emphasizing the financial advisory industry’s involvement in large M&A transactions.
- Private Equity – The involvement of Hg Capital, an existing shareholder in Howden, and Kelso, a backer of Risk Strategies, indicates significant private equity interest.
Financials
- $10 billion – Estimated deal value for Howden's acquisition of Risk Strategies.
- $30 billion – Potential valuation for Howden upon IPO post-acquisition.
- $4 billion – Estimated value of the share sale to partially finance the acquisition.
- $2 billion – Investment from Mubadala into Howden.
- $2 billion – Investment from Hg Capital into Howden.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Howden | Acquirer | Company | A global insurance and reinsurance broker aiming to acquire Risk Strategies. |
| Risk Strategies | Target | Company | A US-based company in talks to be acquired by Howden. |
| Mubadala | Equity Investor | Company | An Abu Dhabi-based sovereign investment fund investing $2 billion in Howden. |
| Hg Capital | Equity Investor | Company | An existing shareholder of Howden, committing $2 billion equity to the transaction. |
| Barclays | Financial Advisor | Company | Advising Howden on the acquisition deal. |
| Morgan Stanley | Financial Advisor | Company | Advising Howden on the acquisition deal. |
| Evercore | Financial Advisor | Company | Advising Risk Strategies and its backer, Kelso. |
| Kelso | Investment Firm Backer | Company | An investment firm backing Risk Strategies. |