Marsh McLennan says it has a deal in place to acquire McGriff Insurance Services for $7.75 billion, funded by cash and debt financing.

U.S. retail broker McGriff, an affiliate of private equity-backed TIH (formerly Truist Insurance Holdings), had $1.3 billion of revenue for the 12 months ending June 30. According to the agreement, Marsh McLennan, through its Marsh McLennan Agency business, will assume a deferred tax asset valued at about $500 million.

The deal adds to Marsh McLennan’s position as the biggest U.S. broker, with $22.7 billion in revenue in 2023, according to AM Best.

After closing, McGriff’s team of 3,500 or so employees, as well as CEO Read Davis, will join Marsh McLennan Agency and operate from existing location. The transaction is expected to close by the end of the year, pending regulatory approvals.

Charlotte, N.C.-based McGriff, founded in 1886, specializes in commercial property/casualty, surety, employee benefits, and personal lines insurance solutions to businesses and individuals across the U.S.

In May, Truist Financial Corporation completed a sale of its remaining stake in TIH, the 10th largest insurance brokerage in the U.S. with $3.46 billion in 2023 revenue, to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice.

With the sale, TIH announced the formation of a board of directors that included Dan Glaser, former CEO of Marsh McLennan and operating partner at CD&R, as chairman. Richard R. Whitt, former co-CEO of Markel Group, Julio Portalatin, former CEO of Mercer, and Ross Buchmueller, former CEO of PURE Insurance, serve as independent directors.