Aon Corp buys Hewitt
Aon Corp, the world’s largest insurance brokerage, will acquire human resource service company Hewitt Associates Inc for $4.9 billion in cash and stock. Aon hopes to beef up its consulting business.
Aon’s offer of $50 per share was 41% more than the Hewitt’s closing stock price on Friday.
The deal will help Aon get a firm foothold in human resource and benefits outsourcing and take on rival insurance broker Marsh and McLennan’s MNC.N Mercer unit.
Hewitt will be integrated into Aon’s existing consulting and outsourcing unit.
Russ Fradin, chairman and chief executive officer of Hewitt, will head Aon Hewitt.
Aon expects the deal to add to 2011 and 2012 earnings and generate about $355 million in annual cost savings in 2013