Risk and insurance company Aon Corporation (AON) on Monday announced it would buy human resources giant Hewitt Associates for $4.9 billion in a cash/stock deal.
The deal will nearly triple the size of the Aon’s consulting operations, making it a $4.3 billion business by revenue. Hewitt shareholders will receive $25.61 in cash and 0.6362 of an Aon share, valuing the offer at $50 a share, Chicago-based Aon said in a statement. That’s 41 percent more than Hewitt’s closing price on July 9.
The purchase is Aon’s biggest, surpassing its $1.4 billion acquisition of reinsurance broker Benfield Group Ltd. in 2008, according to data compiled by Bloomberg. The company, which earns commissions by matching buyers and sellers of insurance, is seeking to boost revenue with the purchase of Hewitt, which provides payroll and consulting services to 3,000 clients.
The deal is expected to close by mid-November.
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