Abu Dhabi-backed financial investor Aquarian Capital has agreed to take private U.S. life insurance and annuity provider Brighthouse Financial in a $4.1 billion deal, culminating a long running saga over the fate of the life insurance and annuity products provider.

The all-cash deal adds to the expanding footprint of Middle Eastern wealth and investment funds across U.S. financial services, as countries like Saudi Arabia deploy their enormous wealth to diversify their economy away from oil.

Aquarian will pay $70 for each share of Brighthouse, representing a 37% premium to its closing price on January 27, a day before media reports of a potential sale had emerged.

Shares of Brighthouse rose 26.7%, hitting their highest in nearly eight years.

U.S. life insurance and annuity providers have long drawn takeover interest, thanks to recession-proof business models and reliable premium-driven cash flows.

Sixth Street, money manager TPG, and insurer Jackson Financial had made varying offers during the sale process, while Apollo Global Management ended up not submitting a bid.

"This deal gives Aquarian immediate relevance as an annuity player, which may not have been a need for other potential buyers who already have portfolio companies in the U.S. market," said David Hitsky, partner at L.E.K. consulting. 

Aquarian is a holding company focused on insurance and asset management businesses that is backed by investors, including RedBird Capital Partners and Abu Dhabi state fund's asset management arm Mubadala Capital, which led a consortium to acquire a 68% stake in New York-based Fortress Investment Group last year.

In April, Mubadala Investment Company entered a $1-billion strategic partnership with New York-based Fortress Investment Group to invest in private credit.

The deal caps off a more than eight-year run in the public markets for Brighthouse, which was spun out of MetLife in 2017.

The deal is expected to close in 2026.

(Reporting by Ateev Bhandari and Arasu Kannagi Basil in Bengaluru; Editing by Arun Koyyur)