Aon is aiming for around $20 billion of revenue with the acquisition of Willis Towers Watson, one of its major rivals in pensions and investment consultancy and insurance broking.
Aon said the combined platform generated revenue of $20 billion (€17.7 billion) in 2019 and a free cash flow $2.4 billion.
The free cash flow is expected to breakeven in the second full year of combination, the firm said when it announced the deal on Monday.
The acquisition sees Aon pay nearly $30 billion, according to Reuters, in an all-stock transaction and the new company will be called Aon.
Willis Towers Watson shareholders will receive 1.08 Aon shares for each Willis Towers Watson share, which represents a 16.2% premium to Willis Towers Watson’s closing share price on 6 March 2020
Expected pre-tax synergies are $800 million, the firm said.
Greg Case, Aon’s chief executive, and Aon chief financial officer Christa Davies will lead the combined company. John Haley, Willis Towers Watson chief executive, will take on the role of executive chairman.
“This combination will create a more innovative platform capable of delivering better outcomes for all stakeholders, including clients, colleagues, partners and investors,” said Case.
Mercer, the two firms’ closest competitor, expanded last year with the purchase of Jardine Lloyd Thompson Group plc.
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