Egan-Jones recommended that shareholders vote in favor of AmTrust Financial Services Inc.'s go-private deal, becoming the second proxy advisory firm to do so.
Earlier, Glass Lewis & Co. LLC also urged AmTrust shareholders to vote for the transaction, while Institutional Shareholder Services Inc. advised against it.
Under the deal, Evergreen Parent LP, an entity formed by private equity funds managed by Stone Point Capital LLC, together with CEO Barry Zyskind, George Karfunkel and Leah Karfunkel, will acquire about 45% of AmTrust's common shares that the Karfunkel/Zyskind families and certain of its affiliates and related parties do not currently own or control.
Egan-Jones said the deal would maximize shareholder value, and its advantages "outweigh the risks associated to the transaction," according to a news release.
Shareholders will vote on the deal at a special meeting scheduled for June 4.
