San Francisco-based private equity investment firm Hellman & Friedman has acquired Chicago-based insurance brokerage firm, Hub International, from Apax Partners, in a transaction worth approximately $4.4bn.

Commenting on the transaction, Hub chairman and CEO Martin Hughes said, "This transaction will strengthen our company’s already solid foundation and enhance our ability to build Hub well into the future."

Under the terms of the agreement, which was initially inked in August 2013, investment funds managed by Hellman & Friedman will hold a majority interest in the company. Hub’s senior management team will continue to have a significant equity position.

The acquired entity employs over 6,500 people in the US, including Puerto Rico, Canada and Brazil, and it is likely that the company will post revenues of nearly $1.2bn for 2013, after the annualized impact of acquisitions.

It is expected that private equity firm Apax will realize a profit of more than three times against its original investment made in Hub at the time of acquisition in 2007.

To fund the transaction, a loan will be taken from BofA Merrill Lynch, Morgan Stanley Senior Funding and RBC Capital Markets.

BofA Merrill Lynch, Morgan Stanley & Co and Stephens were appointed to offer financial advice to Hub and Apax.

Hub International offers property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the US, Canada, and Brazil.

Instituted in 1984, Hellman & Friedman has offices in San Francisco, New York and London, and has raised and managed over $25bn of committed capital.