Australian insurance broker Steadfast Group has agreed to a $5.5bn buyout by a consortium backed by investment firm KKR.
Under the deal, specialty insurance distributor Amwins Group will acquire Steadfast's underwriting agency business, while Dragoneer Investment Group will take control of its broking operations. The brokers and agencies in Steadfast's Networks place around $25bn in gross written premium annually.
Steadfast shareholders will receive A$6 per share in cash, less any permitted dividends or distributions paid before implementation. That offer represents a 51.9% premium to Steadfast's A$3.95 closing share price on June 9, the final trading day before the company disclosed the consortium's initial non-binding acquisition proposal.
Robert Kelly, managing director and chief executive officer of Steadfast, said the backing would strengthen the group.
"With the backing of experienced international investors, we believe Steadfast can strengthen its competitive position, accelerate investment in technology and services, support our independent broker network and create further growth opportunities for the organisation," said Kelly.
