Steadfast’s board is recommending shareholders back a $7.7 billion private equity bid after the offer for Australia’s largest broking company was confirmed on Friday.

The $6-per-share proposal involves Dragoneer and Kohlberg Kravis Roberts acquiring Steadfast, running its broking business and immediately selling on the underwriting agency division to Amwins.

Steadfast CEO Robert Kelly says the offer recognises the significant value created by the company for its public investors and provides an opportunity for the next phase of growth.

“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,” he said.

insuranceNEWS.com.au understands former Steadfast executive Nigel Fitzgerald – who left the group in July last year – will work with Amwins in running the agencies, while continuing to develop Kaibridge, the insurtech he launched in February.

The offer represents a 51.9% premium to the $3.95 price before the bid was announced in June and values the Steadfast equity at $6.67 billion. The deal implies an enterprise value of $7.7 billion.

Steadfast chair Vicki Allen says the recommendation for shareholders to vote in favour – in the absence of a superior proposal and subject to an independent expert finding it is in their best interests – follows “careful consideration by the board and its advisers”.

Law firm Ashurst Perkins Coie, which has advised Amwins, says the deal represents one of the most significant moves in the Australian insurance sector in recent years.

“This transaction will bring together leading participants from across the global insurance and investment sectors and underscores the continued attractiveness of high-quality insurance distribution and underwriting businesses in this region,” Asia-Pacific head of corporate John Brewster said.

Last year, Swedish private equity firm EQT partnered with CVC Asia-Pacific on a bid for AUB that would have valued the group at more than $5 billion, but it dropped the proposal after due diligence.

UK-based Ardonagh acquired PSC Insurance Group in 2024 for an equity value of $2.3 billion.

A detailed scheme booklet will be lodged in October and a Steadfast shareholder meeting is likely in November.

Steadfast is targeting scheme completion by late December, subject to approvals.

Its shares, which were placed in a trading halt before an announcement on Friday, were at $5.83 this afternoon.

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