British-American consulting company Aon plc has completed the acquisition of NFP, a real estate and insurance brokerage company in the middle market, from Madison Dearborn Partners (MDP), the main investor of NFP, and HPS Investment Partners. This is reported in the Aon press release.
The value of the transaction amounted to $13.4 billion, including $7.0 billion in cash and $6.0 billion due to the issue of 19.0 million shares of Aon with financial support from investment companies Madison Dearborn Partners and HPS Investment Partners.
The deal is aimed at expanding its presence Aon is in the fast-growing segment of medium-sized businesses in real estate and accident insurance, as well as asset management and pension plan consulting. After the transaction is completed, NFP will function as an independent risk management platform.
UBS Investment Bank acted as the sole financial advisor to Aon as part of the transaction. Evercore is a leading financial advisor to NFP with the support of Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Jefferies LLC and TD Securities.
In December 2023, Aon PLC entered into an agreement to acquire NFP insurance broker. The insurance sector is quite stable in an unstable economy, as many policies are provided by employers or are in demand by government agencies. At the same time, insurance brokers act as intermediaries between insurers and customers, helping to choose the most suitable policy.
Madison Dearborn Partners, LLC is a private equity firm headquartered in Chicago, Illinois. Since the founding of MDP in 1992, the company has raised more than $31 billion.
HPS Investment Partners, LLC is an alternative investment management company focused on lending. The company has assets worth $111 billion under management.
Aon is a British-American consulting company providing professional services in the field of risk management, insurance, reinsurance, pension provision and healthcare. Profit before tax will exceed $2.8 billion, excluding $400 million in one-time expenses related to the transaction and integration. The headquarters is located in London (England) with offices in 120 countries. The shares are listed on the New York Stock Exchange.
NFP is one of the largest American insurance brokers and consultants in the segment of employee benefits, property insurance, retirement benefits and individual solutions for private clients. In 2022, annual revenue amounted to $738 million in the real estate and accident insurance sector and $1.11 billion in the benefits and life insurance segment. NFP has offices in Canada, Europe and Puerto Rico.
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