According to The Wall Street Journal, Aon is in advanced discussions to acquire USI from KKR for approximately $17 billion, including debt. USI, based in Valhalla, N.Y., specializes in risk management and employee benefits, generating around $3 billion in annual revenue.
KKR, which became USI's largest shareholder in 2023 after purchasing it from Onex in 2017, has been actively selling assets, achieving a record $1.29 billion in sales in the last quarter. This acquisition would allow Aon, which has a market capitalization of $75 billion, to expand its services to midsize businesses and potentially increase its earnings per share by 2028.
Aon recently reported second-quarter adjusted earnings of $3.81 per share, exceeding analysts' expectations, although its stock has declined by 5.6% to $355.40 as of last Friday. The outcome of this deal could significantly impact Aon's growth trajectory and market competitiveness