Ardonagh Nears Takeover of Insurance Broker MDS

(Bloomberg) -- Ardonagh Group has agreed to buy Portuguese insurance broker MDS Group.

U.K.-based Ardonagh announced the acquisition, which will be funded with equity and debt, in a statement Thursday that confirmed an earlier Bloomberg News report. Financial terms were not disclosed.

The deal is valued at more than 200 million pounds ($268 million), according to a person familiar with the matter, who asked not to be identified discussing confidential information. Ardonagh is buying MDS from Sonae Group and IPLF Holding.

MDS manages more than 500 million euros ($567 million) in insurance premiums, generating annual revenue of about 75 million euros. The Lloyd’s of London broker has a presence in Portugal, Brazil, Spain, Angola, Mozambique, Switzerland and Malta, according to its website.

Founded in 2017, Ardonagh operates as an independent insurance broker with four units -- international, specialty, advisory and retail. It’s recently been growing through acquisitions, while also exploring options for its retail unit that could include an initial public offering.

Earlier this month, Ardonagh was valued at $7.5 billion after raising new money from investors including Abu Dhabi Investment Authority and existing backers Madison Dearborn Partners and HPS Investment Partners.

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