Hub to be acquired by Apax Partners and Morgan Stanley Principal Investments

Hub International Limited (TSX: HBG) announced that it has entered into an agreement to be acquired by funds advised by Apax Partners and Morgan Stanley Principal Investments, through an arrangement agreement and related plan of arrangement.
Under the terms of the arrangement Hub is valued at approximately US$1.8 billion [approximately Cdn$2.1 billion], which includes approximately US$1.7 billion [approximately Cdn$1.9 billion] of fully diluted equity and approximately US$145 million [approximately Cdn$168 million] of debt.
The transaction has been unanimously approved by the board of directors following the unanimous recommendation of a special committee comprised of disinterested directors, says a Hub release.
As permitted by the arrangement agreement, Hub may solicit proposals for alternative transactions from third parties until March 19, 2007.
We are excited that our new partners believe in our commitment to investing in our people and are dedicated to working with us to deliver the most value for our clients and colleagues, Martin Hughes, Hubs chairman and chief executive officer, said in a statement.
The transaction is subject to shareholder approval, Canadian court approval of the plan of arrangement, and other regulatory approvals including merger notification filings in the United States and Canada, as well as customary closing conditions.