Madison Dearborn Partners and HPS Investment Partners have agreed to increase their stake in UK broker The Ardonagh Group, acquiring a total of £92 million of shares.
The shares, which were acquired from existing institutional and other minority shareholders, were bought for a price of £1.175 per share, which implies a total equity valuation of £860 million for Ardonagh, and an enterprise value of £1.9 billion.
Madison Dearborn acquired the larger share in this transaction, at £82 million, boosting its total shareholding in Ardonagh from 33% to 43%.
Meanwhile, HPS acquired the remaining £10 million, thereby increasing its shareholding from 52% to 54%.
The deal is expected to complete on 7 June 2019, and all conditions have already been satisfied.
Vahe Dombalagian, Managing Director and Co-Head of the MDP Financial & Transaction Services team, commented: “Alongside HPS, we are pleased to affirm our commitment to the Ardonagh platform, and we are excited about the strong trajectory of the business as it keeps strengthening its position as a leading independent insurance broking platform in the UK.
“Ardonagh remains a unique investment opportunity, given its talented management team and diversified portfolio of brands and leading positions in niche markets across a broad spectrum of insurance sectors,” he added.
David Ross, CEO of The Ardonagh Group, also stated: “We continue to enjoy a truly collaborative relationship with both MDP and HPS. Today’s announcement is a further example of the long term commitment to Ardonagh from shareholders who have a deep understanding of the markets in which we operate.”
