An office building with the Aon logo is seen in the central business district of Sydney, Australia, on June 3, 2020, as coronavirus disease (COVID-19) restrictions are eased.
lauren elliott reuter
Aon The company is nearing a deal worth about $17 billion, including debt, to buy insurance brokerage firm USI from a private equity firm. KKRThe Wall Street Journal reported on Sunday.
The newspaper, citing people familiar with the matter, reported that an agreement could be announced as early as Monday.
USI is a Valhalla, New York-based insurance brokerage and consulting firm specializing in risk management, employee benefits, and retirement consulting. The company’s annual revenue is about $3 billion, according to its website.
KKR acquired USI from private equity firm Onex in 2017 and has since increased its stake, becoming the company’s largest shareholder in 2023.
A potential deal with USI would follow a series of high-profile exits for KKR, including the sale of data center cooling company CoolIT and Circor’s commercial and defense aerospace businesses earlier this year. KKR reported a record $1.29 billion in asset sales for the quarter ended June.
The deal with USI will help Aon, a large insurance brokerage and consulting firm with a market capitalization of $75 billion, expand its reach into mid-market companies and boost earnings per share as early as 2028, the publication reported, citing people familiar with the matter.
Aon on July 29 reported second-quarter adjusted earnings per share of $3.81, beating Wall Street analysts’ expectations. The stock has since fallen 5.6% to close at $355.40 on Friday.
Read the full Wall Street Journal report here.
