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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