Sept 14 (Reuters) - Dell chief Michael Dell's DFO Management and Sequence Holdings said on Monday they would take the Baldwin Group private in a deal valued at $7.7 billion, providing the insurance broker greater flexibility to pursue AI investments.
The deal highlights a growing trend of companies exiting public markets to finance costly AI upgrades. Going private allows managements to focus on long-term investments without the pressure of quarterly earnings cycle or share-price swings that often
accompany short-term margin compression during major technological overhauls.
As per the deal terms, Baldwin shareholders will receive $32.50 apiece in cash.
The offer represents a premium of about 88% to the stock's closing on June 17, the unaffected share price before media reports emerged about a potential deal. Baldwin shares were up 7.3% at 31.83 on Monday.
Baldwin, valued at around $4.14 billion, provides risk management solutions, insurance advisory and tech-enabled underwriting to businesses and individuals.
The take-private deal — led by DFO Management, the investment vehicle for Dell Technologies' founder and CEO — will also 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," Baldwin CEO Trevor Baldwin said.
After the deal's closing, expected in the first quarter of 2027, eligible Baldwin employees will have the option to roll over a portion of their holdings, retaining a significant minority equity stake in the newly private enterprise.
Ardea Partners and MarshBerry were the financial advisers to Baldwin, while Piper Sandler advised Sequence and DFO.
(Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)
