Insurance broker Aon To Pay $4.9 Billion for Hewitt Associates
Category Insurance | Monday, July 12th, 2010Insurance broker Aon Corp. agreed to buy human-resource consulting and outsourcing company Hewitt Associates Inc. in a cash-and-stock deal valued at about $4.9 billion.
The deal will nearly triple the size of the Aon’s consulting operations, making it a $4.3 billion business by revenue. Aon Hewitt, as the consulting and outsourcing operations will be known, will be run by Hewitt Chairman and Chief Executive Russ Fradin.
The deal values Hewitt at $50 a share, a 41% premium over Friday’s closing price. Holders will be able to elect all cash or stock, but $2.45 billion of cash will be paid for Hewitt, with stock making up the rest. Unless otherwise requested, holders would get $25.61 and 0.6362 share of Aon stock for each share of Hewitt.