Howden Acquires Atlantic Group: Strategic M&A Insurance Broker Purchase for US Growth

UK insurance broker Howden has taken a significant step in its expansion strategy by agreeing to acquire M&A protection specialist Atlantic Group. This move underscores Howden’s commitment to growing its presence in the vital US market.

Founded in 2017, Atlantic Group has established itself as a key player in the M&A protection space, boasting a team of over 110 professionals. According to a statement released on Monday, the founders—Richard French, Joe O’Brien, and David Haigh—will reinvest a “substantial portion” of their equity to become shareholders in Howden. The deal values Atlantic Group at more than $500 million, as revealed by a source familiar with the transaction who requested anonymity due to the private nature of the information.

Based in New York, Atlantic Group specializes in providing companies and private equity firms with protection against breaches of warranties, as well as tax and credit risks associated with M&A transactions in the US. Howden, already recognized as the largest transaction liability insurance broker outside the United States, aims to leverage this acquisition to enhance its service offerings.

David Howden, Founder and CEO of Howden, expressed his vision for the merger, stating that it aims to create a “global powerhouse” focused on securing business from the “world’s leading private equity houses and their portfolio companies.” In facilitating this deal, Barclays Plc served as the financial adviser to Howden, while Piper Sandler provided advisory services to Atlantic Group.

The demand for M&A protection has surged over the past decade, driven by a wave of deal-making activity among buyout firms, largely fueled by low interest rates. This type of protection allows sellers to receive a larger portion of their proceeds upfront while providing buyers with a safety net.

This acquisition marks Howden’s latest effort to strengthen its foothold in the US market, where it seeks to compete with major global brokers such as Marsh & McLennan Cos., Aon Plc, Arthur J. Gallagher & Co., and Willis Towers Watson Plc. In its pursuit of growth, Howden previously explored the possibility of acquiring Risk Strategies early last year but ultimately decided to establish its US retail operations independently, hiring hundreds of professionals from rival firms across the country.

Howden, headquartered in London, is owned by a diverse group of stakeholders, including 5,300 employee-shareholders, private equity firms General Atlantic and HgCapital, the Canadian pension fund La Caisse, and the Howden Foundation. As of 2024, the company’s equity was valued at £10 billion ($13.4 billion), ahead of an internal share sale, while its enterprise value, which includes debt, stood at £20 billion.

With aspirations for an initial public offering (IPO), Howden has long been viewed as a strong candidate for this move. David Howden, 62, indicated in a July interview with The Times that he aims to complete an IPO by 2030, although he did not specify a particular venue.

Topics
Mergers & Acquisitions
USA
Agencies