The prospective transaction, which people familiar with the matter say could be announced as soon as Monday, would add a Valhalla, New York based firm that provides risk management, employee benefits and retirement consulting. USI reports about $3 billion in annual revenue on its website.
The seller is private equity firm KKR, which purchased USI from Onex in 2017 and increased its stake over time, becoming the company's largest shareholder in 2023. The potential sale follows several recent KKR divestitures, including exits of data-center cooling company CoolIT and the commercial and defense aerospace unit of Circor earlier this year. KKR reported a record $1.29 billion in asset sales for the quarter ended in June.
For Aon, a major broker and consultancy with a market capitalization of $75 billion, the acquisition would deepen penetration of midmarket clients and is projected to lift earnings per share as soon as 2028, according to a person with knowledge of the matter. The company reported second-quarter adjusted earnings of $3.81 per share on July 29, beating Wall Street estimates.
Investor reaction has been mixed ahead of any official announcement. Aon's share price slipped 5.6%, closing at $355.40 on Friday. If completed, the deal would represent a sizable deployment of capital and signal a continued consolidation push in the insurance brokerage sector as private equity sellers monetise holdings.
What happens next hinges on formal confirmation from the parties. People close to the situation indicate an announcement could arrive as soon as Monday, after which regulatory reviews and integration planning would follow.
