WTW, the global advisory, broking and solutions firm, has signed a definitive agreement to acquire Newfront, a San Francisco-based broker, in a deal valued at $1.3bn.
The transaction combines upfront and contingent consideration, including $900m in cash, $150m in equity for Newfront employees, and additional performance-based equity payments of up to $400m.
The acquisition is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
The deal will expand WTW’s reach in the U.S. middle market and strengthen its position in high-growth sectors such as technology, FinTe ch, and life sciences.
Newfront operates two business segments, Business Insurance and Total Rewards, which will be integrated with WTW’s Risk & Broking (R&B) and Health, Wealth & Career (HWC) segments.
Since 2018, Newfront has achieved a 20% compound annual growth rate in organic revenue, driven by its technology platforms, growing producer base, and adoption of agentic AI for client servicing.
Carl Hess, WTW Chief Executive Officer, said the acquisition marked an important strategic milestone. “The Newfront team has built a broking business powered by exceptional technology that delivers a fast, efficient client experience,” Hess said. “This combination strengthens our U.S. middle-market presence, accelerates our technology and specialty strategies, and enables an integrated platform to drive growth and improve client service.”
Spike Lipkin, Co-Founder and CEO of Newfront, added: “Joining WTW allows us to combine our technology-native approach with WTW’s global presence and established platforms. Together we will deliver a more efficient broking experience and introduce new capabilities for our clients worldwide.”
Newfront’s technology assets, including its client interface Navigator and AI-driven placement automation, complement WTW’s Neuron digital trading platform, risk models, and data analytics. The integration will create an end-to-end digital ecosystem, enabling brokers to serve clients more efficiently, enhance middle-market support, and accelerate cross-selling opportunities across WTW’s global solutions.
The financial terms include run-rate cost synergies of $35m by 2028 and transaction and integration expenses of approximately $155m.
WTW expects the deal to be slightly dilutive to Adjusted EPS in 2026, before becoming accretive in 2027. Equity-based retention incentives of $100 million will be provided to Newfront employees through 2031.
WTW has engaged J.P. Morgan Securities LLC and Weil, Gotshal & Manges LLP as advisors, while Perella Weinberg and Reed Smith LLP are advising Newfront.
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