Brown & Brown (BRO) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands international presence and strengthens position in the Dutch SME insurance market, leveraging scalable distribution and strong local relationships.

• Both organizations share similar cultures, values, and customer-focused approaches, supporting seamless integration.

• The hub-and-spoke model and proven integration approach align with the acquirer's growth strategy and decentralized model.

• The acquired company brings a proven management team and a track record of over 130 completed deals.

• The acquisition is seen as a growth area, with expectations for continued organic and M&A-driven expansion.

Financial terms and conditions

• Purchase price is just over $700 million, funded by cash on hand, free cash flow, and short-term borrowings.

• Projected 2025 revenues are $110–$120 million, with EBITDA/EBITDAC expected between $37–$42 million.

• The transaction is anticipated to be accretive to adjusted diluted net earnings per share.

• No earn-out is associated with the deal, due to local regulatory considerations.

• Financials are prepared under IFRS, with no material differences expected compared to U.S. GAAP.

Synergies and expected cost savings

• Some synergies may exist with previous acquisitions, but these are not central to the integration plan.

• The acquisition leverages a hub-and-spoke model and proven acquisition strategy to expand capabilities.