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Apax, Morgan Stanley to acquire Hub International in $1.8bn deal26/02/2007. Source: AltAssets. 
 Apax Partners and Morgan Stanley Principal Investments have agreed to acquire Hub International, an insurance broker in North America. The $1.8bn deal includes approximately $1.7bn of fully diluted equity and approximately $145m of debt.
Under the terms of the agreement, HUB shareholders will receive $40 per share in cash, representing a premium of 28 per cent to the 90-trading day average closing stock price on the NYSE, according to a statement.
The transaction has been unanimously approved by the board of directors.
Hub International provides property and casualty, reinsurance, life and health, employee benefits, investment and risk management products and services through offices located in the US and Canada.
Mitch Truwit, partner at Apax and head of Apax's Financial & Business Services Group in the US, said, 'We believe Hub's high quality team and franchise is a perfect match for Apax's commitment to the financial and business services sector. From the outset, this transaction has been grounded in the opportunity to invest and partner with one of the best management teams in the industry.'
Michael Petrick, managing director at Morgan Stanley and global head of MSPI, added, 'Hub has established a leading position in the North American insurance brokerage market as a result of the dedication of its respected management team and efforts of its employees. Morgan Stanley, together with Apax, looks forward to investing in the continued growth of Hub.'
Apax has $20bn of funds under management and offices in the US, the UK, Germany, Sweden, Italy, Spain, Israel, Hong Kong and India.
MSPI is a Morgan Stanley capital investment vehicle. MSPI together with Investor AB recently acquired Swedish medical products company Mölnlycke Health Care Group from Apax for €2.85bn.
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