Arthur J. Gallagher said that buying the insurance broker would expand its retail middle-market property and casualty focus across the U.S.

Under the agreement, Gallagher will acquire AssuredPartners’ parent company from GTCR and funds advised by Apax Partners LLP. The net consideration for the transaction, after accounting for a $1 billion deferred tax asset, is approximately $12.45 billion, representing an EBITDAC multiple of 11.3x after synergies.

Gallagher plans to fund the acquisition through a mix of long-term debt, short-term borrowings, free cash and common equity.