Aon to Acquire USI Insurance Services for $17 Billion, Aiming to Strengthen Middle Market Presence
Insurance broker Aon announced it will acquire rival firm USI Insurance Services from private equity company KKR in a $17 billion deal. The acquisition is expected to close by the fourth quarter after regulatory approvals and will be funded through new debt. CEO Greg Case emphasized that this move aims to create what he called the 'premier U.S. middle-market platform,' enhancing Aon's ability to serve mid-sized businesses across America. USI, currently ranked as the tenth-largest insurance broker in the U.S., brings over $3 billion in annual revenue and more than 10,500 employees into the fold. The acquisition follows a similar strategy with NFP’s purchase last year. USI CEO Mike Sicard will transition to Aon's leadership team post-merger. Despite an initial dip of about 1% for Aon shares in premarket trading, Case expressed confidence that this deal represents one of the most significant opportunities he has seen during his tenure as CEO.
