AIG’s $5.56 Billion Acquisition of Validus

Citigroup Global Markets Inc., Perella Weinberg Partners LP and Debevoise & Plimpton LLP advised AIG on the transaction. Validus was advised by J.P. Morgan Securities LLC and Skadden, Arps, Slate, Meagher & Flom LLP.

Leading global insurer American International Group, Inc. (NYSE: AIG) has entered into a definitive agreement to acquire all outstanding common shares of Validus Holdings, Ltd. (“Validus,” NYSE: VR), a leading provider of reinsurance, primary insurance, and asset management services. The transaction enhances AIG’s General Insurance business, adding a leading reinsurance platform, an insurance-linked securities asset manager, a meaningful presence at Lloyd’s and complementary capabilities in the U.S. crop and excess and surplus (E&S) markets. Holders of Validus common shares will receive cash consideration of $68.00 per share, for an aggregate transaction value of $5.56 billion, funded by cash on hand.

The transaction has been unanimously recommended by the boards of directors of AIG and Validus. The transaction is expected to close mid-2018, subject to approval by Validus shareholders and other customary closing conditions, including regulatory approvals in relevant jurisdictions and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The Debevoise team is led by partners David Grosgold (Picture) and John M. Vasily, and includes partners Paul M. Rodel, Jeffrey J. Rosen, Elizabeth Pagel Serebransky, Peter F.G. Schuur and James C. Scoville; counsel Kyra K. Bromley, Judith L. Church and J. Michael Snypes, Jr.; and associates Kristen A. Matthews, Dexter Hoffman, Angela W. Lee, Daniel Priest, Ashley J. Shapero and Michael G. Stern.

The Skadden team includes: Financial Institutions M&A partners Todd Freed and Jon Hlafter, and associate Patrick Lewis; Tax partner Jessica Hough (Washington, D.C.); Executive Compensation and Benefits partner Neil Leff; Intellectual Property and Technology counsel James Talbot; and Executive Compensation and Benefits associate Shalom Huber?.

 

Involved fees earner: David Grosgold – Debevoise & Plimpton; John Vasily – Debevoise & Plimpton; Paul Rodel – Debevoise & Plimpton; Jeffrey Rosen – Debevoise & Plimpton; Dexter Hoffman – Debevoise & Plimpton; Daniel Priest – Debevoise & Plimpton; Kristen Matthews – Debevoise & Plimpton; Angela Lee – Debevoise & Plimpton; Michael Stern – Debevoise & Plimpton; Elizabeth Pagel Serebransky – Debevoise & Plimpton; Michael Snypes Jr. – Debevoise & Plimpton; Peter Schuur – Debevoise & Plimpton; Ashley Shapero – Debevoise & Plimpton; James Scoville – Debevoise & Plimpton; Kyra Bromley – Debevoise & Plimpton; Judith Church – Debevoise & Plimpton; Todd Freed – Skadden Arps Slate Meager & Flom; Jon Hlafter – Skadden Arps Slate Meager & Flom; Patrick Lewis – Skadden Arps Slate Meager & Flom; Jessica Hough – Skadden Arps Slate Meager & Flom; Neil Leff – Skadden Arps Slate Meager & Flom; Shalom Huber – Skadden Arps Slate Meager & Flom; James Talbot – Skadden Arps Slate Meager & Flom;

Law Firms: Debevoise & Plimpton; Skadden Arps Slate Meager & Flom;

Clients: American International Group; Validus Holdings, Ltd. ;

 

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Author: Ambrogio Visconti