Ardonagh Group is merging its UK personal lines broking business Atlanta with Markerstudy to create a new platform transacting more than £3 billion ($5.7 billion) annual gross written premium (GWP) and employing more than 7300 people. 

The transaction, which is subject to customary conditions and regulatory approvals, values Atlanta at £1.2 billion ($2.3 billion) and will be funded by a new investment led by Pollen Street Capital and Bain Capital Special Situations.   

Ardonagh and its related parties will receive a combination of cash and a substantial minority equity stake in the combined business, in addition to two seats on the board of directors.

“There are few deals in the market with the potential to be truly transformational for all parties concerned and a combination with Atlanta has been a long-term ambition of ours,” Markerstudy Group CEO Kevin Spencer said. 

Markerstudy serves about 6 million customers across motor, pet, home and commercial, particularly SME. The company reported GWP of £2 billion ($3.8 billion) last year. 

Atlanta distributes a broad suite of products through household insurance brands including Swinton, van specialist Autonet and motorcycle experts Carole Nash. 

“With the support and backing of the Ardonagh Group, Atlanta has evolved from the van broker Autonet, into a major multi-product, multi-brand insurance challenger in the UK,” Ardonagh Retail CEO Ian Donaldson said. 

“This transaction is a huge testament to our people and we look forward to working with Kevin and his team to continue innovating and providing great value to our customers.” 

Key Atlanta executives including Mr Donaldson, Craig Ball and Emma Rawlinson will join the Markerstudy management team as senior executives of the combined group. 

In Australia, Ardonagh owns Envest, Resilium Insurance Broking and Epsilon Underwriting.