Aon and NFP, a prominent middle-market property and casualty broker, have announced a definitive agreement for a major acquisition.
Aon, known for its comprehensive professional services, is set to acquire NFP, renowned for its risk, benefits, wealth, and retirement plan advisory solutions. This acquisition signifies a strategic expansion for Aon into the middle-market segment.
The acquisition, valued at an estimated $13.4bn, will be funded with $7bn in cash and $6.4bn in Aon stock. This move is aligned with Aon’s Aon United strategy and Aon Business Services operating platform. The firm’s investment in advanced analytics and track record of results are further enhanced by this acquisition, enabling the combined firms to deliver content and capabilities efficiently to the middle-market segment. Doug Hammond, CEO of NFP, will continue leading the business within Aon, reporting to Eric Andersen, Aon’s president.
Aon, with its global reach and comprehensive suite of professional services, offers a wide array of solutions in risk management, insurance brokerage, and human capital consulting. On the other hand, NFP stands out as a leader in property and casualty brokerage, benefits consulting, wealth management, and retirement plan consulting, especially for middle-market clients. NFP’s strong local relationships and people-first approach have made it a significant player in the industry since its inception in 1999.
The acquisition opens up new opportunities for both Aon and NFP. Clients of NFP will gain access to the firm’s global resources and distribution network, while NFP’s employees can look forward to accelerated growth and development opportunities. The alignment of values and capabilities between the two companies promises a synergistic partnership, geared towards elevating performance and delivering enhanced value to clients, colleagues, and shareholders.
Greg Case, CEO of Aon, highlighted the importance of the acquisition: “The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values.” Similarly, Doug Hammond of NFP expressed enthusiasm about the partnership, citing the benefits for clients and growth prospects. Additionally, Eric Andersen commended NFP’s leadership team and culture, aligning with Aon’s commitment to client excellence and growth.
The transaction, subject to regulatory approvals, is expected to close in mid-2024, with operations of Aon and NFP continuing independently until then.
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