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
Top Posts & Pages
- Voters to decide whether hunting, fishing is constitutional right
- DAVID DALLAS: You say “Obama”, I say “Ebola”
- MARTIN WILLOUGHBY: Andrew Adams helps grow Addicus
- Dak Prescott's autograph fetches a pretty penny
- Grand juries charge seven with election violations
- MISSISSIPPI RISING: Time to sell the image
- Butler Snow names Crockoft new office director
- Farm theft investigation recovers $200K in stolen equipment
- Judge gets more time to fight efforts to remove him from office