海角视频 insurance giant Howden is reportedly on the brink of a US takeover deal that could pave the way for a £23.2bn stock market float, Sky News has reported.
The British insurance broker, established by David Howden, is expected to finalise a £7.73bn ($10bn) acquisition of American private insurance broker and risk management adviser, Risk Strategies, in the coming weeks, as reported by .
This could potentially lead to a stock market flotation valuing the business at over £23.2bn ($30bn), likely by 2027, according to industry experts.
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Howden is said to be seeking a binding agreement on the purchase, backed by US private equity firm Kelso, before the end of March.
The anticipated £7.73bn price tag will be partially funded by a share sale worth approximately £3.1bn ($4bn).
Banking sources suggest that Abu Dhabi-based sovereign investment fund, Mubadala, and existing Howden shareholder, Hg Capital, could each inject around £1.5bn ($2bn) into the London-based firm ahead of the landmark deal.
This new equity would give Howden an aggregate valuation for the combined group of around $30bn.
Barclays and Morgan Stanley are reportedly advising Howden, while Evercore is said to be acting for Kelso and Risk Strategies.
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The news follows comments from founder Howden last month, who described his firm as a "phenomenal British success story" and "really big believers in the London market."
Howden emphasised that his company has pumped £1.6bn into the 海角视频 market over the past four years, providing jobs for more than 7,000 people in the country.
He described the London insurance market as a "phenomenally important part of 海角视频 GDP", adding that everyone is striving to boost the 海角视频's GDP, and the insurance market is one of the real success stories.
This statement followed the announcement by his insurance brokerage firm that it surpassed the £3bn revenue mark over the last fiscal year due to double-digit "organic growth".
City AM has reached out to Howden for further comment.