Breakdown cover and car insurance company RAC is close to selecting banks to lead its initial public offering in London, according to people familiar with the matter.
The nearly 130-year-old firm is set to pick Goldman Sachs Group Inc., Bank of America Corp. and Barclays Plc to help arrange a possible listing, the people said,
asking not to be identified as the information is private. The listing would value it at around £5 billion ($6.9 billion), the people said. Lazard Inc. is acting as a financial adviser on the transaction, the people said.
The RAC is one of the UK’s most popular providers of breakdown cover and car insurance. It is owned by private equity firms Silver Lake, CVC Capital Partners Plc and Singapore’s GIC Pte, according to its website.
Deliberations are ongoing and details could still change, the people said. The appointment of Goldman Sachs was first reported by Sky News. Representatives fo
r Silver Lake, Bank of America, Barclays, CVC, GIC, Goldman and Lazard declined to comment.
Partner Steve Germundson said there was an even distribution of deals throughout the year. The years 2019 and 2025 are the only years in which deal volume during Q4 was lower than other quarters, he said.
The number of large deals was highlighted by six firms with revenues over $25 million getting sold. Of those, Arthur J. Gallagher bought Assured Partners and W
oodruff-Sawyer; Risk Strategies and One80 went to Brown & Brown; and The Baldwin Group acquired CAC Group.
“We expect more large deals and recapitalizations in 2026 as the chase for scale continues,” Cunningham said. “This will continue to benefit the better sel
lers, whose valuations should remain at their current heady levels, absent a major change in the underlying economy or the insurance marketplace.”
Property/casualty insurance agencies are the primary sellers, accounting for 455, or 66%,
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of the total transactions for the year. Private equity-backed/hybrid buyers continued to dominate buyers
PE firm BroadStreet lead all buyers in 2025 with 29 acquisitions, but that amount is down from 90 in the prior year. Hub International was next with 49 deals com
pared with 61 in 2024. Inszone Insurance Services was next with 45 deals. World Insurance Associates and Keystone Agency Partners were next, and each had more deals in 2025 than 2024.