Investment firms acquiring ProSight Global for $586M, taking company private

Morristown-based ProSight Global Inc. is going private, having agreed to be acquired by a pair of investment firms in a $586 million deal, the trio announced Friday.

ProSight, a domestic specialty insurance company, has signed a definitive merger agreement with TowerBrook Capital Partners L.P., an international investment management firm, and Further Global Capital Management, a private-equity firm, for an all-cash transaction. Affiliates of the two firms will acquire all outstanding common shares of stock in ProSight under the deal, at a price of $12.85 per share.

The deal is expected to close in the third quarter, subject to customary conditions and approvals.

Upon the close of the deal, Jonathan Ritz will become ProSight’s CEO, while its current CEO and president, Larry Hannon, will continue in the president’s role. Ritz was previously a top executive with Aspen Insurance Holdings Ltd., Validus Holdings Ltd. and Validus Specialty.

“This transaction and the new partnership with TowerBrook and Further Global will expand ProSight’s underwriting capabilities and fund investments in talent and technology that will improve our offerings to distribution partners and customers,” Hannon said in a prepared statement. “Since our founding 12 years ago, our employees have dedicated themselves to creating a differentiated specialty insurance company.

“I’m very proud of what we created, thank them for their dedication and very much look forward to working closely with Jonathan as we write ProSight’s next chapter as a private company.”

Ropes & Gray LLP and Sullivan & Cromwell LLP are ProSight’s legal advisers, while Barclays Capital Inc. and Goldman Sachs & Co. LLC are its financial advisers. Sidley Austin LLP is legal adviser to TowerBrook and Further Global, while Kirkland and Ellis also advised, and Piper Sandler & Co. is TowerBrook’s financial adviser.

Truist Securities Inc. is lead arranger on financing, while Guy Carpenter & Co. LLC is advising ProSight on the reinsurance transaction.