UK broker Aon has signed a definitive agreement to acquire middle market insurance intermediary NFP in a cash and stock deal valued at $13.4bn (£10.58bn).
The deal with funds affiliated with Madison Dearborn Partners and HPS Investment Partners – NFP owners – includes $7bn in cash and $6.4bn in Aon stock.
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Set up in 1999, US-based NFP is engaged in offering P&C insurance brokerage, benefits and retirement plan advisory, and wealth management services.
With an employee headcount of 7,700, the privately held company is focused on catering to middle market customers.
Under the terms of the agreement, Doug Hammond, chairman and CEO of NFP, will continue to oversee the acquired business as an independent but integrated unit within Aon.
Hammond will report to Aon president Eric Andersen.
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By GlobalDataAon CEO Greg Case said: “The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values.
“Doug and NFP have built an exceptional team, with a complementary one-firm mindset, and we expect to both learn from their entrepreneurial culture and share with them the depth and breadth of our capabilities to create more value for clients, colleagues and shareholders.”
Hammond added: “Aon is an industry leader in delivering risk capital and human capital capabilities and this acquisition is compelling for many reasons. Our clients will benefit from Aon’s global resources and distribution, while our people will have more opportunities to accelerate the growth of NFP.”
Subject to regulatory approvals and customary closing requirements, the transaction is expected to close in mid-2024.
Until the closing, Aon and NFP will continue to run their businesses separately.
UBS Investment Bank served as the financial adviser to Aon for the deal.
Earlier this month, Aon reached an agreement to sell its personal lines business in the Netherlands to private equity company BlackFin Capital Partners.
