Australia’s largest insurance broker, Steadfast Group, has agreed to a A$7.7 billion ($5.51 billion) buyout led by a U.S. consortium backed by private equity firm KKR, alongside Amwins Group and Dragoneer Investment Group.
The offer values Steadfast at A$6 per share, representing a 51.9% premium to the stock’s closing price on June 9, the last trading session before Steadfast disclosed a non-binding proposal from Dragoneer and Amwins. The consortium will split Steadfast’s operations, with Amwins acquiring the underwriting agency business and Dragoneer taking control of the broking segment.
Steadfast’s board has unanimously recommended shareholders approve the deal, contingent on no superior bid emerging and an independent valuation confirming the offer’s fairness. The transaction is slated for completion in December, pending regulatory and shareholder approvals.
The deal follows a period of heightened M&A activity in Australia’s insurance distribution sector, as global investors target established broking platforms amid stable cash flows and recurring revenue models.
