Dell's DFO Management and Sequence to take Baldwin private in $7.7 billion deal

Baldwin shareholders will receive $32.50 apiece in cash, implying a premium of about 88% to the stock's June 17 closing — the unaffected share price before media reports emerged about a potential deal. Its shares were up 7.5% at $31.89 on Monday.

"This is a strong transaction for Baldwin and a positive signal for the brokerage sector. Insurance brokerages remain attractive investments because they offer recurring revenue, strong cash flow and significant opportunities for consolidation in a still-fragmented market," said Peter McMurtrie, partner at consulting firm West Monroe's Insurance Practice.

Baldwin, valued at around $4.14 billion, provides risk management solutions, insurance advisory and tech-enabled underwriting to businesses and individuals.

The deal — led by DFO Management, the investment vehicle for Dell Technologies' founder and CEO — will provide Baldwin with patient capital, bypassing the rigid investment timelines and forced exits typical of traditional private-equity firms.

"This transaction allows us to deliver immediate value to shareholders while establishing a partnership with Sequence and DFO that will give Baldwin the long-duration capital and frontier AI execution to invest and move at the pace this moment demands," CEO Trevor Baldwin said.

Sept. 14 (Reuters) - Dell chief Michael Dell's DFO Management, along with Sequence Holdings, will take Baldwin Group private in a deal, the companies said on Monday, providing the insurance broker greater flexibility to pursue AI investments.