Arthur J. Gallagher & Co. (AJG) announced the acquisition of O'Gorman & Young, Incorporated, along with its affiliate G. R. Murray Insurance. Terms of the transaction remain undisclosed.

New Jersey-based O'Gorman & Young is an insurance broker, which provides its customers with commercial property/casualty, employee benefits, risk management consulting and personal lines insurance services across the eastern U.S. It specializes in offering insurance services to public and private schools, contractors, municipalities, lawyers, and financial and nonprofit institutions.

Arthur J. Gallagher will benefit from O'Gorman & Young’s immense experience along with its service-based culture and niche specializations. The company’s presence in New Jersey along with strong carrier relationships will help the insurance broker to strengthen its presence on the East Coast.

Under the direction of Arthur J. Gallagher's Eastern region retail property/casualty brokerage operation head Douglas Brown, O'Gorman & Young’s President Ernest "Jay" Lawton and his team will continue operations from their respective locations.

Arthur J. Gallagher has been on an acquisition spree of late. This takeover marks the 46th in 2014, and the 10th in the ongoing quarter. Acquisitions are a great source of revenues for the company and going forward, we expect numbers to grow with its strong liquidity cushioning inorganic growth initiatives.

Currently, Arthur J. Gallagher carries a Zacks Rank #3 (Hold). Its compelling inorganic growth may prompt analysts to raise its estimates, resulting in a rank upgrade. However, it is facing tough competition from other insurance brokers who are also pursuing inorganic growth.

Willis Ireland, a part of Willis Group Holdings plc (WSH), completed the acquisition of a wide range of Irish pension and financial advisory businesses from IFG Group plc recently.

Mercer, a wholly-owned subsidiary of Marsh & McLennan Companies (MMC), announced the acquisition of Swiss specialist private markets advisor and delegated solutions provider – SCM Strategic Capital Management AG – last month.

Validus Holdings, Ltd. (VR) has also acquired Western World Insurance Group, Inc.

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