Accelerant Holdings (ARX) had a Thursday that most public company executives can only dream about. The specialty insurance firm saw its stock jump about 44% after it agreed to be taken private by Thoma Bravo in a deal worth more than $4 billion. And just to make the day even sweeter, the company also reported second-quarter 2026 results that blew past Wall Street's expectations.
Let's start with the numbers. Accelerant reported adjusted earnings of 32 cents per share, which is double the 16 cents analysts were looking for. Revenue came in at $356.9 million, comfortably beating the $279.23 million consensus estimate. That's the kind of beat that makes you wonder if the analysts were even paying attention.
Earnings Snapshot
The quarter was strong across the board. Revenue jumped to $356.9 million from $219.1 million a year earlier. Exchange Written Premium increased 23% year over year to $1.32 billion, with Third-Party Direct Written Premium making up 47% of that volume.
Net income climbed to $80 million from $13.1 million in the same period last year. Adjusted net income rose 165% to $70 million, and adjusted earnings per diluted share increased 146% to 32 cents. Adjusted EBITDA also improved, coming in at $93.1 million versus $63.6 million a year ago, with the margin expanding to 30.6% from 29%.
During the quarter, Accelerant also repurchased about 4.73 million Class A common shares for $66 million, leaving roughly $123 million still available under its buyback authorization. That's a nice little detail, though it's probably not the main reason anyone's paying attention today.
Thoma Bravo Deal Sends Shares Soaring
The earnings release was almost an afterthought compared to the big news: Accelerant agreed to be acquired by private equity firm Thoma Bravo in an all-cash transaction valued at more than $4 billion. Shareholders of both Class A and Class B stock will receive $20.25 per share in cash. That represents a 49% premium to the stock's closing price on Aug. 12, which explains why investors are so excited.
There's also a potential 6% annual ticking fee if closing gets delayed due to certain insurance regulatory approvals. That's a nice little sweetener to keep everyone motivated.
The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approvals. Entities affiliated with Altamont Capital Partners, which hold about 82% of Accelerant's outstanding voting rights, have already agreed to vote in favor of the deal. So the outcome seems pretty much locked in.
Once the deal closes, Accelerant will become privately held and its shares will no longer trade on the New York Stock Exchange. Altamont Capital Partners and Accelerant's founders plan to retain equity ownership alongside Thoma Bravo. So they're not just cashing out; they're staying in the game.
Given the pending transaction, Accelerant canceled its scheduled second-quarter earnings conference call. The company also said it won't provide third-quarter or full-year 2026 guidance. That's a common move when a deal is in the works, but it does leave investors without a forward-looking view.
ARX Price Action: Accelerant shares were trading up 44.16% at $19.62 during premarket trading on Thursday, according to market data.
