Reportedly, Willis Towers Watson (WLTW) and Aon plc (ALC) have entered a definite all-stock transaction with a combined equity value of approximately $80 billion.
“The combination of Willis Towers Watson and Aon is a natural next step in our journey to better serve our clients in the areas of people, risk and capital. This transaction accelerates that journey by providing our combined teams the opportunity to drive innovation more quickly and deliver more value” stated Willis Towers Watson CEO, John Haley.
“This combination will create a more innovative platform capable of delivering better outcomes for all stakeholders, including clients, colleagues, partners, and investors. Our world-class expertise across risk, retirement, and health will accelerate the creation of new solutions that more efficiently match capital with unmet client needs in high-growth areas like cyber, delegated investments, intellectual property, climate risk, and health solutions,” stated on CEO Greg Case.
The deal brings in the two businesses into a global platform equipped with technology needs that is more relevant, responsive and serviceable to customer needs. The combined company to be named Aon to offer technology-enabled global services focusing on the areas of risk, retirement, and health. Aon is expected to drive year one earnings accretion to Aon adjusted EPS along with free cash flow accretion of more than 10% after full realization of expected pre-tax synergies of $800 million.
Structure & Goals:
Aon to be headquartered in London, the United Kingdom with John Haley as its Executive Chairman. The combined firm to be led by Greg Case and Christa Davies, Aon Chief Financial Officer. The Board of Directors to comprise of current directors proportionally from Aon and Willis Towers Watson. Aon to remain committed to maintaining AON’s current credit rating with a strong balance sheet with a streamlined capital management approach and a strong return on invested capital.
The combined company is confident in maintaining long-term financial goals of mid-single-digit or higher organic revenue growth and double-digit free cash flow growth. Upon completion of the transaction, existing Aon shareholders to own 63% and existing Willis Towers Watson shareholders will own approximately 37% of the combined company on a fully diluted basis.
A replay of the live conference call held on March 9, 2020, can be accessed for 30 days by dialing (866) 452-2113 for the U.S. or (203) 369-1217 outside of the U.S.
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