Blackstone and Aon plc recently signed a deal in which Blackstone will buy Aon’s benefits administration and HR BPO platform for $4.3
billion, with an additional $500 million or more on the table tied to
future performance.
“This transaction reinforces Aon’s position as the
leading, global professional services firm focused on risk, retirement and
health,” Aon President and CEO Greg Case said. “The sale of our
outsourcing platform creates incremental capital to strengthen growth in core
operations, and accelerates the pursuit of inorganic growth opportunities that
address emerging client needs, similar to recent acquisitions in cyber risk
advisory and health brokerage solutions.”
The agreement, which is subject to closing conditions like
antitrust clearances, is slated for completion by the second quarter of this year.
Aon expects that it will improve its return on invested capital and announced
that it plans to use some of the proceeds in its ongoing share repurchase
program.
“We believe that this world-class platform will thrive
under Blackstone’s ownership, providing clients the level of service and
performance they have come to expect and allowing us to further reshape our
portfolio to focus on stronger growth and higher return on invested capital
opportunities consistent with our strategy,” Case said.