Insurance
Home›Insurance›Industry & Deals›Aon to acquire USI in $17 billion deal to boost mid-ma…
Aon to acquire USI in $17 billion deal to boost mid-market presence
USI, an insurance brokerage, generated about $3 billion in annual revenue and offers risk management, health coverage, and retirement plan services.
Aon PLC has agreed to acquire insurance brokerage USI from KKR for $17 billion including debt, aiming to expand its reach among medium-sized businesses, the companies said. USI provides risk management, health insurance, and retirement plan services to businesses and individuals, and reports about $3 billion in annual revenue.
The purchase price is $17 billion, or $16.7 billion on a net basis, reflecting approximately $278 million of certain tax attributes. Aon said the net purchase price values the acquisition at about 14.5 times on a synergized trailing twelve-month adjusted EBITDA basis.
Aon expects to fund the transaction, as well as related transaction expenses and other costs, with new debt raised across a range of maturities, subject to market conditions. The deal is intended to establish a U.S. middle-market platform and deepen Aon’s context advantage to support organic growth, according to Aon CEO Greg Case.
The transaction also marks another exit for KKR, which acquired USI in 2017 for $4.3 billion. KKR recently reported a record $1.29 billion in quarterly asset sales.