California companies Newfront Insurance and ABD Insurance and Financial Services have entered into an agreement to combine.
The merger values the combined company, which will be called Newfront, at $1.35 billion and is expected to close by the end of August.
“We are intent on modernizing insurance and transforming it into something effortless that delights clients, insurance professionals, and trading partners,” Spike Lipkin, CEO of Newfront, said in a statement.
The combination of the two companies will bring together 600 employees to serve over 10,000 clients and place more than $2 billion in premiums annually.
Newfront’s headquarters will remain in San Francisco and will be led by Spike Lipkin as CEO, Kurt de Grosz as executive chairman, Brian Hetherington as president, and Gordon Wintrob as chief technical officer.
Perella Weinberg Partners LP served as financial advisor for Newfront and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian LLP served as legal advisor. Reagan Consulting, Inc. served as financial advisor for ABD and Weil, Gotshal & Manges LLP served as legal advisor.
ABD provides risk management, insurance brokerage, human resources, and retirement consulting services. Our advisors offer guidance and craft innovative solutions to help address risk for clients of varying sizes, growth stages, and industries. Headquartered in San Mateo, ABD has offices throughout California, Washington, Illinois, and New York.
Newfront is an insurance brokerage driven largely by proprietary technology.
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