From Yahoo Finance: 2025-06-10 06:55:00

Insurance broker Brown & Brown acquires Accession Risk Management in a $9.83 billion cash-and-stock deal, part of a trend of mega-mergers in the industry. Aon, Marsh McLennan, and Arthur J. Gallagher also made significant acquisitions recently. Despite economic uncertainties, companies are moving forward with acquisition plans cautiously.

Brown & Brown plans to fund the acquisition through equity raise and bond issuance. The deal will strengthen their presence in the middle-market segment and add heft to their property and casualty and employee benefit insurance businesses. Accession operates mainly in the middle-market segment with over 5,000 insurance professionals in the U.S. and Canada.

The acquisition is a major step for Brown & Brown towards their goal of reaching $8 billion and beyond in revenue. Over the years, acquisitions have helped the company grow significantly. The deal is expected to close in the third quarter of 2025, combining programs and wholesale brokerage segments into a new specialty distribution segment.

BofA Securities, J.P. Morgan Securities, and Skadden, Arps, Slate, Meagher & Flom advised Brown & Brown on the transaction. Brown & Brown’s stock dipped 0.6% in early trading following the announcement of the acquisition. The companies do not have a significant amount of concentration or overlap in any single area.

Read more: Brown & Brown signs nearly $10 billion deal for rival broker Accession