Blackstone to Acquire Aon Unit for Up to $4.8 Billion
By CHAD BRAYFEB. 10, 2017
LONDON — The Blackstone Group said on Friday that funds affiliated with the private equity giant had agreed to pay up to $4.8 billion to acquire Aon’s human resources outsourcing business.
The business is the largest benefits administration platform in the United States and a provider for cloud-based human resources management systems, Blackstone said. It serves about 15 percent of the United States’ working population at more than 1,400 companies.
Aon, an insurance broker and risk manager that moved its headquarters to London from Chicago in 2012, would receive $4.3 billion in cash, plus up to another $500 million based on future performance, under the deal’s terms.
“We are excited to acquire a world-class leader of scale in health, retirement and HR services,” Peter Wallace, a Blackstone senior managing director, said in a news release. “Blackstone sees tremendous opportunity for investing in leading businesses within the technology-enabled services sector, where we believe there is a significant opportunity to accelerate future growth.”
Aon acquired the business in 2010 as part of its $4.9 billion takeover of Hewitt Associates.
“This transaction sharpens our focus on growing our core professional services capabilities and accelerates our ability to invest in emerging client needs, while ensuring that clients continue to receive the level of service and performance they have come to expect,” said Gregory C. Case, the Aon president and chief executive.
Citigroup, Credit Suisse, SMB Capital and the law firm Kirkland & Ellis advised Blackstone, while Morgan Stanley and the law firm Sidley Austin advised Aon.
The transaction is subject to regulatory review and is expected to close in the second quarter.
