Jardine Lloyd Thompson (JLT) , one of the largest insurance brokers in the world, has today been acquired by Marsh & McLennan for £4.3bn.
Under the terms of the transaction, holders of JLT’s common shares will receive cash consideration of £19.15 pounds per share.
In a news announcement this morning, the company said the transaction will be funded by a combination of cash on hand and proceeds from debt financing.
The companies shares are up 31% today on the back of the news.
MMC President and CEO Dan Glaser said: “The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues and our shareholders. The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.
“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company.”
JLT was created in 1997 when Jardine Insurance Brokers merged with Lloyd Thompson Group, and now operates in 40 countries with particular strength in the UK and Australia as well as in key emerging markets across Asia and Latin America.
JLT provides risk and insurance broking advice to energy, mining, healthcare, construction, marine, and aerospace sectors as well as in financial lines, political risk and trade credit.
With annual revenue of over $14bn, Marsh & McLennan is a global professional services firm, headquartered in New York City with businesses in insurance brokerage, risk management, reinsurance services and more.
Following completion of the transaction, JLT Group Chief Executive Dominic Burke will join MMC as Vice Chairman and serve as a member of MMC’s Executive Committee.
Dominic Burke said: “I am enormously proud of what JLT has achieved, founded on our people, our culture and our unwavering commitment to our clients.
"MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”
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