BLACKSTONE AGREES TO BUY US BROKER ALLIANT FOR $1.1BN

US private equity firm Blackstone Group has agreed to acquire California-based broker Alliant Insurance Service, marking the latest step in the ongoing consolidation of the US broking sector. While the parties did not disclose terms of the deal, the Wall Street Journal reported that the deal was valued at more than $1.1bn, citing a person familiar with the matter. Blackstone is to purchase Alliant in a partnership with the broker’s management and employees. The firm is currently held by New York investment firm Lindsay Goldberg and Alliant managers and employees. Alliant CEO Tom Corbett said that “Blackstone’s financial resources and commitment to work strategically with management teams will enable our firm to continue to expand”. The deal was announced nine months after Alliant agreed to acquire the US operations of Jardine Lloyd Thompson of the UK. It also follows by only several months deals in which Apax Partners led a group to acquire North American broking group Hub International and Goldman Sachs agreed to acquire New York-based broker USI Holdings. In another deal at the weekend, US broker Hilb Rogal & Hobbs completed its acquisition of The Urman Co, a Colorado-based broker that specialises in p/c and employee benefits for public entities. In yet another move, Hub has acquired BNC Insurance Services, the agency operation of North Dakota bank holding BNCCorp, for $37.25m in cash.