Hewitt Associates will merge with the global consultancy arm of Aon Corporation in a transaction worth around $4.9 billion.
The agreement, consisting of 50% cash and 50% Aon stock, will see the creation of a new consultancy called Aon Hewitt. The Aon Corporation intends to integrate Hewitt with its existing consulting and outsourcing operation Aon Consulting in the UK and abroad and operate it globally under the new brand.
Russ Fradin, chairman and chief executive officer of Hewitt, will serve as chairman and chief executive officer of Aon Hewitt, reporting to Greg Case, chief executive officer, Aon Corporation.
Case said: “This agreement reflects our ongoing efforts to ensure that Aon’s associates, capabilities and
technology remain at the forefront of our industry, providing distinctive client value.
“As we continue to grow our business, this merger will give us a broader portfolio of innovative products and services focused on what we believe are two of the most important topics in the global economy today – risk and people.”
The deal has yet been voted upon by shareholders and is expected to be complete by mid-November this year.
Read more on benefits consultants