ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co., a global insurance brokerage and consulting services firm, has expanded its international footprint with the acquisition of London-based workplace communication agency Simply-Communicate Ltd, also known as Simply. The terms of the deal, finalized today, were not disclosed.
Simply specializes in providing consulting services and digital solutions aimed at improving the employee experience within organizations. Following the acquisition, founder Marc Wright and his team will continue to operate from their current London location. They will now fall under the leadership of Ben Reynolds, the global managing director of Gallagher's Communication Consulting practice.
J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co., expressed his satisfaction with the acquisition, noting that Simply's expertise in digital transformation and digital experience will complement Gallagher's existing services in the employee communication sector. He also highlighted the cultural alignment between the two companies, welcoming Wright and his associates to Gallagher's global team.
Arthur J. Gallagher & Co., headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries worldwide. The firm provides a range of services including insurance brokerage, risk management, and consulting, facilitated through its owned operations and a network of correspondent brokers and consultants.
This strategic move is intended to bolster Gallagher's capabilities in the realm of digital employee communication and consulting.
The acquisition is based on a press release statement.
InvestingPro Insights
As Arthur J. Gallagher & Co. (AJG) expands its global presence with the recent acquisition of Simply, the company's financial health and market performance remain key factors for investors. According to InvestingPro data, AJG boasts a robust market capitalization of $51.11 billion, reflecting its significant standing in the industry. The company's dedication to shareholder returns is evident through its impressive history of dividend payments, having maintained them for 40 consecutive years and raising them for the past 13 years.
InvestingPro Tips highlight that AJG is expected to see net income growth this year, which could be a driving force behind the company's strategic acquisitions and expansion efforts. Additionally, the positive revisions by 7 analysts for the upcoming period indicate a favorable outlook on the company's performance. It's worth noting, though, that AJG is trading at a high earnings multiple with a P/E ratio of 30.2 based on the last twelve months as of Q4 2023, suggesting a premium valuation in the market.
With a strong return over the last five years and a decade, AJG's strategic moves, including the acquisition of Simply, may continue to build on this momentum. For investors interested in a deeper analysis, there are additional InvestingPro Tips available, which can be further explored with the use of coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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