The Baldwin Group has entered into a definitive agreement to merge with CAC Group in a transaction valued at $1.026 billion upfront, creating what is expected to become the largest majority-colleague-owned, publicly traded insurance brokerage firm in the United States.
The deal includes $438 million in cash and 23.2 million shares of Baldwin common stock valued at $589 million based on Baldwin’s 30-day volume-weighted average price as of December 1, 2025. The agreement reflects an implied multiple of 7.9x Baldwin’s estimated 2025 pro forma adjusted EBITDA, inclusive of targeted full run-rate synergies.
In addition to the upfront consideration, the structure includes a performance-based earnout of up to $250 million and a $70 million deferred payment. The company expects the merger to increase 2025 adjusted EPS by more than 20 percent, excluding one-time integration and transaction expenses. Baldwin also anticipates that the merger will be approximately net leverage neutral at closing and will accelerate its deleveraging trajectory through 2028. The combined company is projected to generate more than $2 billion in gross revenue and over $470 million in adjusted EBITDA in 2026.
Once completed, Baldwin would rank as one of the most immense majority colleague-owned, publicly traded insurance brokers based on Business Insurance’s 2025 Top 100 U.S. Brokers list. The transaction is expected to close in the first quarter of 2026, pending regulatory approvals and customary closing conditions.
CAC Group currently ranks number 35 on Business Insurance’s 2025 list of top U.S. insurance brokers. The merger significantly expands Baldwin’s specialty advisory capabilities by integrating CAC’s deep expertise across natural resources, private equity, real estate, senior living, education, and construction. CAC also brings strength in key specialty product lines, including financial lines, transactional liability, cyber, and surety, reinforced by the firm’s data and analytics platform.
Together, the firms expect to combine CAC’s specialty capabilities with Baldwin’s national middle-market presence, creating broader distribution and enhanced solution delivery. The platform will also integrate Baldwin’s reinsurance and MGA operations along with its proprietary technology ecosystem. The companies emphasized their shared commitment to colleague ownership and talent development as core components of the new organization.
The combined firm will include nearly 5,000 colleagues across retail, specialty, reinsurance, and MGA operations in all major U.S. markets.
Baldwin announced that it will host a webcast and conference call on December 3, 2025, at 8:30 AM ET to discuss the partnership. Details, including dial-in numbers and replay availability, are listed on the company’s investor relations website.
The Baldwin Group, operating under The Baldwin Insurance Group, Inc. and its affiliates, provides insurance distribution services and tailored risk management, benefits, and insurance solutions to more than three million clients across the United States and internationally.
KEY QUOTES
“This is a transformational moment for The Baldwin Group. This combination brings together two highly complementary firms, aligned in culture and values, yet distinct in expertise, business mix, and geographic footprint. By uniting CAC’s deep specialty capabilities with Baldwin’s scale and diversified platform, we create a stronger, more balanced organization that can deliver exceptional solutions for clients and unmatched opportunities for colleagues.”
“CAC has built an enviable specialty firm, and we are looking forward to welcoming their exceptional team to The Baldwin Group.”
Trevor Baldwin, CEO, The Baldwin Group
“Coming together with Baldwin gives us the scale and infrastructure to accelerate everything that makes CAC distinctive: our specialty expertise, entrepreneurial mindset, and relentless focus on client success. This merger positions us to deliver more for clients and create expanded opportunities for colleagues, while staying true to the values that have fueled our growth.”
Erin Lynch, CEO, CAC Group
