KKR, Dragoneer, and Amwins to acquire Steadfast Group

Australian insurance broker Steadfast Group has agreed to a $5.5 billion 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 $25 billion in gross written premium annually.

Under the transaction, Steadfast shareholders will receive AUD$6 per share in cash, less any permitted dividends or distributions paid before implementation.

The A$6 offer represents a 51.9% premium to Steadfast’s AUD$3.95 closing share price on June 9, the final trading day before the company disclosed the consortium’s initial non-binding acquisition proposal.

“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.” – Steadfast managing director and CEO Robert Kelly.