Thoma Bravo puts a price on insurer worries

Accelerant announced on August 13 that it had agreed to be acquired by private equity firm Thoma Bravo for $20.25 per share in cash, a 49% premium. Investor Altamont Capital Partners controls 82% of the vote at the specialty insurance marketplace, and has agreed to cast these votes in favor of the transaction.

Morgan Stanley served as financial advisor to Accelerant's board, while Houlihan Lokey advised a special committee of the board. BMO Capital Markets and Wells Fargo are serving as advisors to Thoma Bravo.

For Thoma Bravo, bruised after turning over software firm Medallia to creditors in June, this is a chance to prove that it can burrow into a new niche that can hopefully overcome AI concerns. Altamont is rolling some of its stake, which should help preserve the still-crucial relationship with Hadron. The price is well below the roughly $30 per share at which Accelerant traded at its peak, though a ticking fee that adds to the consideration in the case of certain regulatory slowdowns hints further at the bewildering convolution. The timing is smart. Thoma Bravo’s own risk underwriting is the challenge.