Source: Next Insurance
“This transaction marks the start of a new chapter for ERGO. Together with NEXT Insurance, we will tap into a highly attractive market overseas, unlocking significant growth opportunities while further diversifying our existing business portfolio. At the same time, we will work with NEXT Insurance to leverage their cutting-edge technology and our technical excellence, contributing to our commitment to sustainable, profitable growth,” says Markus Rieß, Chief Executive Officer of ERGO Group.
“Today marks a significant moment for NEXT Insurance, our customers, agents, and partners alike. Over the past few years, we have transformed the U.S. small business insurance market by delivering a simple, seamless, tailored experience for business owners. This transaction will propel us forward, allowing us to scale our technology-driven approach and empower even more small business owners with innovative insurance solutions. With the strength and expertise of ERGO and Munich Re and their well-recognized re/insurance know-how, we are poised to lead the charge in reimagining small business insurance in the USA,” comments Guy Goldstein, Chief Executive Officer of NEXT Insurance.
ERGO Group AG is now a major shareholder of NEXT Insurance, holding around 29 percent of the company’s outstanding share capital. As part of ERGO Group, NEXT Insurance is expected to contribute mid-triple-digit $ million earnings to the company’s net result in the medium-term, with further significant earnings potential beyond this. The definitive agreement was concluded at a valuation of $2.6 billion, for 100 percent of NEXT Insurance’s shares. The closing of the transaction is subject to customary conditions, including the required regulatory approvals, and is expected in the third quarter of 2025.
Ardea Partners LP acted as lead financial advisor and Latham & Watkins LLP served as legal advisor to NEXT Insurance. Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC also acted as financial advisors to NEXT Insurance. Kirkland & Ellis LLP, Barnea Jaffa Lande & Co., Bain & Company, Inc., and Morgan Stanley & Co. LLC acted as advisors to ERGO / Munich Re.
Read the full article: https://www.nextinsurance.com/blog/ergo-gains-access-to-the-us-market-with-the-full-acquisition-of-next-insurance/
