Australia’s Steadfast agrees to $5.5 billion buyout bid by KKR-backed consortium

Australia's Steadfast Group has reached a A$7.7 billion ($5.52 billion) buyout agreement with a consortium led by KKR, according to insurance broker Reuters on Friday. The deal involves Amwins Group acquiring Steadfast's underwriting agency business, while Dragoneer Investment Group takes control of its broking operations. Steadfast shareholders will receive A$6 per share, representing a 52% premium to the company's June 9 closing price.

Deal manager Emanuel Ajay Datt noted the deal highlights the valuation gap between Australian public and global private markets. Steadfast's share price has risen over 40% since the initial offer in June. The company's board unanimously recommended shareholders approve the consortium's proposal, provided it's deemed beneficial by an independent expert.

The transaction is part of a growing trend of Australian public-to-private deals targeting financial services companies, with EQT AB and CC Capital Partners also pursuing acquisitions in the country.