Aon, WTW align for innovation
Aon plc and Willis Towers Watson have announced a definitive agreement to combine in an all-stock transaction with an implied combined equity value of approximately USD80 billion with a view to accelerate innovation to benefit clients.
“The combination of Willis Towers Watson and Aon is a natural next step in our journey to better serve our clients in the areas of people, risk and capital,” said Willis Towers Watson CEO John Haley in a press release. “This transaction accelerates that journey by providing our combined teams the opportunity to drive innovation more quickly and deliver more value.”
“This combination will create a more innovative platform capable of delivering better outcomes for all stakeholders, including clients, colleagues, partners and investors,” said Aon CEO Greg Case. “Our world-class expertise across risk, retirement and health will accelerate the creation of new solutions that more efficiently match capital with unmet client needs in high-growth areas like cyber, delegated investments, intellectual property, climate risk and health solutions.”
The rationale behind the move is to convert both business into one unit that is technology-enabled, relevant and responsive to client needs, the statement said. Both firms believe in the power of data-driven insights to create new sources of client value. The transaction is expected to generate more than USD10 billion in shareholder value creation from the capitalised value of expected pre-tax synergies, based on the blended 2020 price to earnings ratio of Willis Towers Watson and Aon UK net of USD2.0 billion in expected one-time transaction, retention and integration costs.
The combined company, to be named Aon, will be the premier, technology-enabled global professional services firm focused on the areas of risk, retirement and health.
Aon will maintain operating headquarters in London, United Kingdom. John Haley will take on the role of executive chairman with a focus on growth and innovation strategy. The combined firm will be led by Greg Case and Aon chief financial officer Christa Davies, along with a leadership team that reflects the complementary strengths and capabilities of both organizations. The Board of Directors will comprise proportional members from Aon and Willis Towers Watson’s current directors.
The transaction is subject to the approval of the shareholders of both Aon Ireland and Willis Towers Watson, as well as other customary closing conditions, including required regulatory approvals.
