AJG · 10-Q · 2026Q2 · Full report

Acquisition / Partnership / Divestiture

Arthur J. Gallagher & Co. · 2026-08-05 · Importance 71 · Surprise 60 · Matches filing data

Acquisitions completed during the twelve-month period ended June 30, 2026 materially expanded the brokerage platform and contributed $897 million of additional compensation expense and $228 million of additional operating expense during the first six months of 2026. The company identified acquisitions including AssuredPartners, which closed in August 2025, and Woodruff Sawyer, which closed in April 2025, as significant transactions requiring integration and transaction-related costs. Acquisition integration costs were $90 million in compensation and $110 million in operating expense for the six-month period, while acquisition-related adjustments added $120 million of compensation expense. Brokerage workforce increased to 56,202 employees at June 30, 2026 from 44,909 a year earlier, reflecting acquisitions and related expansion.

Key facts

• Cash paid for acquisitions, net of cash and restricted cash acquired, was $616 million and $1,662 million in the six-month periods ended June 30, 2026 and 2025, respectively. source
• We used proceeds from the December 2024 public offering to fund a portion of the cash consideration payable in connection with the AssuredPartners acquisition and for other general corporate purposes including other acquisitions. source
• Annualized revenues of businesses acquired in the six-month periods ended June 30, 2026 and 2025 totaled approximately $122 million and $392 million, respectively. source
• In April 2025, we made a $750 million earnout payment to the sellers related to the acquisition of the Willis Towers Watson treaty reinsurance brokerage operations in December 2021. source
• During the six-month period ended June 30, 2026, we sold several books of business and recognized net gains of $14 million and received net cash proceeds of $6 million. source
• We completed sixteen and twenty acquisitions in the six-month periods ended June 30, 2026 and 2025, respectively. source
• During the six-month period ended June 30, 2026 we issued 0.1 million shares ($17 million) of our common stock as payment for a portion of the total consideration paid for 2026 acquisitions and earnout payments made in 2026. source
• During each of the three-month periods ended June 30, 2026 and 2025, we recognized $1 million of expense related to the accretion of the discount recorded for earnout obligations in connection with our acquisitions. source

Impact estimates