Aon, a leading insurance broker, announced on Monday its acquisition of USI Insurance Services from private equity firm KKR.
The transaction, valued at $17 billion, will be financed through new debt issued by Aon and is expected to close in the fourth quarter, subject to regulatory approvals.
During an appearance on CNBC’s “Squawk Box” on Monday, Aon CEO Greg Case emphasized that the merger will establish the premier U.S. middle-market platform.
“This means we’re going to be in a position to bring world-class solutions to the underserved U.S. middle market, and set a new standard of client leadership for the 200,000 middle-market companies in the U.S. and their 48 million employees,” he said.
This acquisition builds on Aon’s previous purchase of NFP in 2024, another insurance broker focused on the U.S. middle market.
An office building featuring the Aon logo is visible in the Central Business District of Sydney, Australia, as coronavirus restrictions ease on June 3, 2020.
Loren Elliott | Reuters
According to the press release announcing the deal, USI is the tenth largest insurance broker in the U.S., with over $3 billion in annual revenue and more than 10,500 employees.
Upon closing, USI CEO Mike Sicard will transition to Aon’s president and global CEO of middle market.
“Joining Aon represents a truly energizing next chapter for our firm and an opportunity to accelerate our momentum as part of the Aon United platform,” Sicard said in the release. “Our firms share strong, one-firm cultures with a deep commitment to working together to bring the best of our capabilities to clients.”
In the press release, KKR partner Chris Harrington stated that Aon is the ideal partner to support USI’s next growth chapter.
Shares of Aon slipped about 1% in premarket trading Monday. However, despite the initial decline, Case expressed that the opportunity to serve the middle market at scale through this acquisition holds tremendous value potential for shareholders.
“Maybe the greatest I’ve seen in my 20-year career as CEO,” he said.
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