The Baldwin Group, an insurance distribution company, has agreed to be taken private through a majority investment by Sequence Holdings and DFO Management, the family investment office of Dell Technologies founder Michael Dell.
The all-cash transaction values Baldwin at approximately $7.7 bn. Existing shareholders will receive $32.50 for each share of common stock, an 88% premium to Baldwin’s unaffected closing price on June 17, 2026, one day before reports emerged that the company was considering a take-private transaction.
The total enterprise value includes an equity purchase price of approximately $4.6 bn and about $3.1 bn of net debt that will be assumed or refinanced as part of the transaction. The valuation represents approximately 20 times Baldwin’s trailing 12-month adjusted EBITDA of about $396 mn.
Under the agreement, an entity formed by Sequence and DFO will acquire a majority interest in Baldwin. Eligible Baldwin employees who currently own equity will have the opportunity to roll over part of their holdings and retain a significant minority stake in the private company.
Sequence is a permanent holding company that acquires established businesses in the service economy, while DFO provides long-duration family capital.
Baldwin said the structure will preserve employee ownership while providing additional capital and engineering resources for investment in technology and artificial intelligence.
The acquisition will be completed through a newly formed merger subsidiary that will merge into Baldwin, leaving Baldwin as a wholly owned subsidiary of the parent company. The transaction isn’t subject to a financing condition.
Baldwin’s board unanimously approved the deal after receiving a unanimous recommendation from a special committee of independent and disinterested directors. The committee worked with separate legal and financial advisers during its review.
The transaction is expected to close in the first quarter of 2027, subject to shareholder approval, required regulatory clearances and customary closing conditions. Baldwin’s shares will cease trading on Nasdaq once the deal is completed.
This transaction allows us to deliver immediate value to shareholders while establishing a partnership with Sequence and DFO that will give Baldwin the long-duration capital and frontier AI execution to invest and move at the pace this moment demands.
Trevor Baldwin, CEO of The Baldwin Group
He said the company’s strategy will remain focused on developing a diversified and vertically integrated insurance business, while private ownership is expected to support faster investment in technology and talent. Baldwin also said employee ownership will remain part of the company’s structure after the transaction.
- Sequence CEO and co-founder Michael J. Lee said the firm plans to bring engineering talent and patient capital to Baldwin, with technology expected to reshape existing workflows, products and services.
- Michael Dell said Baldwin has developed a data and platform advantage over the past 15 years and described DFO’s capital as flexible and patient, without a fixed fund exit timetable. He said DFO and Sequence intend to support Baldwin’s management with capital and operational and engineering expertise.
Ardea Partners is serving as lead financial adviser to Baldwin, with MarshBerry also providing financial advice. Davis Polk & Wardwell is acting as legal adviser, while Troutman Pepper Locke is serving as insurance regulatory counsel.
Perella Weinberg Partners is the independent financial adviser to Baldwin’s special committee, with Potter Anderson & Corroon serving as its independent legal adviser.
Piper Sandler is lead financial adviser to Sequence and DFO, while Moelis is acting as sole capital markets adviser. Morgan Stanley, Barclays and Wells Fargo are also providing financial advice. Latham & Watkins is legal counsel to Sequence, and Sullivan & Cromwell is advising DFO.
