U.S. insurance brokers have looked past bolt-on acquisitions and turned to billion-dollar deals over the past two years to boost their market presence and strengthen their competitive edge.
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The acquisition of CAC will strengthen Baldwin’s presence in the middle-market segment, which caters to companies smaller than multinational corporations but larger than typical small businesses.
Baldwin will also get access to CAC’s expertise in industries such as private equity, real estate, senior living, education, and construction as well as specialty product lines.
As part of the deal, Baldwin will pay $438 million in cash and 23.2 million shares worth $589 million.
The combined entity is expected to generate over $2 billion in gross revenue next year. CAC’s executive chairman Paul Sparks will join Baldwin’s board as part of the deal.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Krishna Chandra Eluri
Baldwin strikes $1 billion deal for rival insurance broker CAC Group
