Aon is close to acquiring USI Insurance Services from private-equity company KKR in a deal worth about $17 billion, including debt, The Wall Street Journal reported Sunday. This deal could be announced as soon as Monday, if the two sides complete their talks. Aon, USI and KKR have not yet commented on the report.
USI is an Insurance brokerage and consulting company based in Valhalla, New York. It provides insurance, risk management, employee benefits and retirement services. The company brings in around $3 billion in revenue each year. KKR bought USI from Onex in 2017 for $4.3 billion, including debt. Since then, KKR has invested more than $1 billion in the company and become its largest shareholder.
For KKR, selling USI would be another major exit after several recent business sales. The private equity firm recently sold data-centre cooling company CoolIT and the commercial and defence aerospace business of Circor. The purchase would give Aon a stronger position in the midsize business market. It could also help Aon increase its earnings per share as early as 2028, according to the Journal.
Aon is one of the world’s largest insurance brokers and consulting firms. The company has a market value of about $75 billion. Aon reported adjusted earnings of $3.81 per share for the second quarter, beating analysts’ expectations. However, its shares have fallen 5.6% since then, closing at $355.40 on Friday.
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The possible USI acquisition would be one of Aon’s biggest moves to expand its insurance brokerage business.
