Aon buying Hewitt for $4.9B in cash, stock
Published: July 12,2010
CHICAGO — Insurance broker Aon Corp. said today it agreed to buy human resources company Hewitt Associates for $4.9 billion in cash and stock to expand its consulting operations.
The insurance broker will pay $50 per Hewitt share. That is a 41 percent premium from Hewitt’s closing price Friday of $35.40.
Aon, based in Chicago, plans to integrate Hewitt with its existing consulting and outsourcing operations and create a new unit, Aon Hewitt, after the deal closes.
Hewitt, based in Lincolnshire, Ill., is a human resources consulting and outsourcing company.
Aon expects the deal will save $355 million annually beginning in 2013. It said the deal will help earnings in 2011 and 2012.
Hewitt stockholders will receive $25.61 in cash and about 0.64 percent of a share in Aon stock per Hewitt share. The total payment will be $2.45 billion in cash and 64 million shares.
The deal is expected to close by mid-November.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Officials set hunting dates for birds; expands dove season by 20 days
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- Mississippi judge dismisses lawsuit seeking to overturn Sen. Cochran's GOP primary win
- George Flaggs regrets repayment flaw in lending law
- TECH 21 — Mississippi's most wanted in technology
- Chefs John Folse and Rick Tramonto are dotting every ‘i’ and crossing every ‘t’ in the development of Seafood R’evolution, which is set to open in November
- Bryant issues executive order to establish Delta water task force
- PEDIGREE dog food recalled; might contain metal fragments