Abu Dhabi-backed Aquarian Capital will acquire Charlotte-based Brighthouse Financial in a $4.1 billion deal, the two companies announced Thursday. The transaction is expected to close next year.
Brighthouse Financial will operate as a standalone entity, keep its name and remain headquartered in Charlotte’s Ballantyne area. Eric Steigerwalt will remain president and CEO of the insurance and annuity provider, a position he’s held since 2016.
The deal calls for Brighthouse shareholders to receive $70 per share, which is about 35% more than what the stock was trading for in late January. That’s when news first emerged of a potential buyout of the company, which sells annuity and life insurance products. Brighthouse had approximately 1,400 employees as of Dec. 31 and total assets of about $243 billion.
Brighthouse closed Wednesday at $51.80 a share, then soared more than 26% today, trading around $65.60 at about 1 p.m. That is very close to the initial opening price of $64.57 when Brighthouse began trading on Nasdaq in August 2017, following its separation from MetLife.
Shares traded for less than $30 for much of 2020, amid the pandemic. But it has mostly been in the $40 to $50 range since then.
Like many insurance companies, Brighthouse’s financial results are often complex and fluctuate for a variety of reasons. It posted net income after dilution of $286 million last year, after reporting a $1.2 billion loss in 2023.
Brighthouse traces its roots to Travelers Insurance, which was founded in 1863 in Hartford, Connecticut.
“This transformative transaction marks an exciting new chapter for Brighthouse Financial and is the culmination of a process initiated by our board of directors earlier this year,” Steigerwalt said in a release.
Founded in 2017, New York-based Aquarian Capital has approximately $25.6 billion in assets under management with 35 investments. It is backed by New York City-based RedBird Capital Partners and Abu Dhabi state fund Mubadala.
The transaction marks one of the largest recent take-privates in the U.S. insurance sector and underscores private equity’s growing appetite for life and annuity platforms, according to Private Equity Wire. The deal requires shareholder and regulatory approvals.
“The acquisition of Brighthouse Financial aligns perfectly with our strategic focus on the United States retirement market, which represents a significant and growing opportunity,” said Rudy Sahay, founder and managing partner of Aquarian Capital. “We plan to preserve Brighthouse Financial’s disciplined and thoughtful approach to distribution, products and services while accelerating its strategy through continued investment and customer focus.”
RBC Capital Markets was exclusive financial advisor, Skadden, Arps, Slate, Meagher & Flom served as legal adviser and Milliman and Oliver Wyman served as actuarial advisers to Aquarian Capital.
Wells Fargo and Goldman Sachs were financial advisers, Debevoise & Plimpton as legal advisers and Milliman as actuarial advisers to Brighthouse.