2 May 2017Insurance

Aon closes $4.3bn business sale to Blackstone

Re/insurance broker Aon has completed the sale of its benefits administration and HR business process outsourcing (BPO) platform to private equity funds affiliated with Blackstone.

The cash consideration at closing was $4.3 billion, and additional consideration of up to $500 million based on future performance. Total after-tax cash proceeds were approximately $3 billion after customary working capital and other adjustments, according to the statement.

Aon has signed a definitive agreement to sell its outsourcing platform in February 2017. The company said that the deal improves return on invested capital, sharpens focus on delivering advice and solutions for clients, and accelerates innovation.

"The completion of this transaction reinforces our position as the leading global professional services firm providing a broad range of risk, retirement and health solutions," said Greg Case, president and chief executive officer, Aon.

"The incremental capital we have generated allows us to accelerate investment in our proprietary data and analytics capabilities and pursue new opportunities to address emerging client needs, similar to recent acquisitions in the cyber risk advisory and health solutions space," Case added.

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More on this story

4 May 2017   Re/insurance broker Aon has completed its acquisition of the international health and benefits brokerage portfolio of Mayfair Group, a London-headquartered solutions provider to Indian multinational companies.
10 May 2017   Aon Risk Solutions, the global risk management business of Aon, has announced the hiring of Joe Clark and Taylor Turney in the US.
10 January 2018   Blackstone Insurance Solutions, a new business launched by private equity group Blackstone, has hired the former president of New York Life’s Investments Group as its chief executive.