Chicago-based insurance broker Hub International Limited said ithas completed its $1.7 billion deal to be acquired by privateequity firms Apax Partners and Morgan Stanley PrincipalInvestments.

The transaction will pay stockholders $41.50 per share.

Shares of Hub's common shares will cease trading on the New YorkStock Exchange and the Toronto Stock Exchange today, and the firmwill be delisted.

Apax is a private equity firm with $20 billion under management.Apax has offices in the United States, the United Kingdom, Germany,Sweden, Italy, Spain, Israel, Hong Kong and India.

Morgan Stanley is based in New York and is a financial servicesfirm providing banking, securities, investment management, wealthmanagement and credit services.

This is the second private equity acquisition of a majorpublicly held insurance brokerage firm this year. On May 4, USIcompleted its deal to be acquired by Goldman Sachs & Co.'sprivate equity arm, GS Capital Partners, at $17 a share. That dealwas valued at around $1.4 billion.

Kevin M. Stipe, a senior vice president and principal of ReaganConsulting Inc., noted in National Underwriter (June 4, page 42)that there is rampant speculation that one or several otherpublicly held brokers are looking at acquisition deals by privateequity firms.

Two factors are driving acquisition strategies, he pointed out.Private equity firms are flush with cash, according to Mr. Stipe,and they are looking to deploy that capital. Brokers are underpressure from stockholders to increase growth annually at 15percent but find that difficult in a soft market that is limitingorganic growth to 5 percent or less, forcing the turn toacquisition to continue growth.

Bobby Reagan, president and chief executive officer of ReaganConsulting, wrote in National Underwriter (April 9, page 26) thatincreased regulations and earnings pressures are contributing tothe turn to private equity markets.

He also noted there are contributing business advantages makingthe move from public to private attractive to both parties,including the generation of cash and the fact that the brokeragebusiness is not very capital intensive.