We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arthur J. Gallagher (AJG) Expands in Texas With PIATX Buyout
Read MoreHide Full Article
Arthur J. Gallagher & Co. (AJG - Free Report) acquired PIATX, LLC. The terms of the transaction have not been revealed yet.
San Antonio-based PIATX, LLC, founded in 2009, provides unbiased employee benefits advice to small businesses and individuals. Being an employee benefits broker and consultant, it remains focused on delivering responsive and innovative coverages and services to businesses across Texas. The company offers a wide range of insurance options.
The addition of PIATX will, thus, boost the acquirer’s existing benefit capabilities in San Antonio. Moreover, the buyout will help Arthur J. Gallagher to expand its presence and capabilities in the Texas small group benefits space.
Notably, the latest acquisition marks Arthur J. Gallagher’s eighth buyout in the fourth quarter of 2020. The company’s robust capital position along with sustained solid operational performance should continue to back its inorganic efforts.
Inorganic Growth Story
Acquisitions enable this Zacks Rank #3 (Hold) insurance broker to expand into desirable geographic locations, extend its presence in retail and wholesale insurance and reinsurance brokerage services markets, and increase the volume of general services currently provided. Its inorganic pipeline remains strong, with revenues of about $350 million associated with 40 term sheets either agreed upon or being prepared.
In the first nine months of 2020, the company completed 17 mergers, representing $151.2 million of annualized revenues. Revenue growth rates have generally been 2.5-15% for 2020 acquisitions. The buyouts provide the company with incremental capabilities and services to assist clients across Australia, the U.K., Europe and the United States. The company remains focused on its long-term growth strategies of delivering organic revenue growth, and pursuing mergers and acquisitions.
Other Acquisition in the Same Space
There have been a host of acquisitions in the insurance space of late, given significant capital availability. Brown & Brown’s (BRO - Free Report) subsidiary, Hull & Company, LLC, acquired assets of South & Western, and all issued and outstanding shares of its affiliate, S&W Premium Finance Company, Inc. Assurant (AIZ - Free Report) acquired HYLA Mobile in an effort to consolidate its position as a leader in trade-in and upgrade programs. Marsh & McLennan Companies, Inc.’s (MMC - Free Report) unit Marsh & McLennan Agency LLC recently acquired the independent agency, INSPRO in Nebraska.
Price Performance
Shares of Arthur J. Gallagher have gained 33% in a year outperforming the industry’s increase of 3.5%. Efforts to ramp up the company’s growth profile and capital position should help shares gain further.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Arthur J. Gallagher (AJG) Expands in Texas With PIATX Buyout
Arthur J. Gallagher & Co. (AJG - Free Report) acquired PIATX, LLC. The terms of the transaction have not been revealed yet.
San Antonio-based PIATX, LLC, founded in 2009, provides unbiased employee benefits advice to small businesses and individuals. Being an employee benefits broker and consultant, it remains focused on delivering responsive and innovative coverages and services to businesses across Texas. The company offers a wide range of insurance options.
The addition of PIATX will, thus, boost the acquirer’s existing benefit capabilities in San Antonio. Moreover, the buyout will help Arthur J. Gallagher to expand its presence and capabilities in the Texas small group benefits space.
Notably, the latest acquisition marks Arthur J. Gallagher’s eighth buyout in the fourth quarter of 2020. The company’s robust capital position along with sustained solid operational performance should continue to back its inorganic efforts.
Inorganic Growth Story
Acquisitions enable this Zacks Rank #3 (Hold) insurance broker to expand into desirable geographic locations, extend its presence in retail and wholesale insurance and reinsurance brokerage services markets, and increase the volume of general services currently provided. Its inorganic pipeline remains strong, with revenues of about $350 million associated with 40 term sheets either agreed upon or being prepared.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the first nine months of 2020, the company completed 17 mergers, representing $151.2 million of annualized revenues. Revenue growth rates have generally been 2.5-15% for 2020 acquisitions. The buyouts provide the company with incremental capabilities and services to assist clients across Australia, the U.K., Europe and the United States. The company remains focused on its long-term growth strategies of delivering organic revenue growth, and pursuing mergers and acquisitions.
Other Acquisition in the Same Space
There have been a host of acquisitions in the insurance space of late, given significant capital availability. Brown & Brown’s (BRO - Free Report) subsidiary, Hull & Company, LLC, acquired assets of South & Western, and all issued and outstanding shares of its affiliate, S&W Premium Finance Company, Inc. Assurant (AIZ - Free Report) acquired HYLA Mobile in an effort to consolidate its position as a leader in trade-in and upgrade programs. Marsh & McLennan Companies, Inc.’s (MMC - Free Report) unit Marsh & McLennan Agency LLC recently acquired the independent agency, INSPRO in Nebraska.
Price Performance
Shares of Arthur J. Gallagher have gained 33% in a year outperforming the industry’s increase of 3.5%. Efforts to ramp up the company’s growth profile and capital position should help shares gain further.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>