Insurance giant Howden has agreed to acquire professional services consultancy Barnett Waddingham, aiming to bring pension and related advice capability to the firm.
With nearly 1,800 people, UK consultancy Barnett Waddingham focuses on risk, pensions, investment, and insurance, representing over 20 per cent of FTSE 100 companies.
This acquisition will now double Howden’s global employee benefits business in terms of employees.
David Howden, CEO of Howden, said: “In our journey to build a global broker, we recognise the need to create a world-class employee benefits business for our client.”
He noted that since 2018, the broker’s employee benefits division has delivered a 52 per cent compound annual growth rate.
“Expanding our pensions advisory and administration capability is crucial to our long-term, global growth plans, and Barnett Waddingham provides a fantastic platform to build our capability for clients around the world,” he added.
Commenting on the planned acquisition, Business Secretary Jonathan Reynolds said: “The UK is a thriving business hub, and Howden’s acquisition is a major vote of confidence in not only our investment environment but helps cement the UK’s status as a services superpower.”
“With financial, professional and business services identified as key growth sectors in our upcoming Industrial Strategy, we are delivering the long-term growth that supports skilled jobs and raises living standards across the UK, supporting our Plan for Change,” he added.
In February, Howden revealed that it broke the £3bn revenue barrier over the last financial year thanks to double-digit “organic growth.”
Speaking to City AM then, Howden said his firm is a “phenomenal British success story”.
Earlier this month, Sky News reported that Howden was set for a US takeover deal that could lead to a £23.2bn stock market float.
Howden is pursuing a binding agreement on the acquisition, supported by private equity firm Kelso, before the end of March. The expected £7.73bn cost price will be partly financed by a share sale worth some £3.1bn ($4bn).
