Aon PLC (NYSE:AON) announced on Wednesday that it has agreed to acquire NFP, a middle-market property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor, for about $13.4 billion in cash and stock.
The global professional services firm said the acquisition is expected to expand Aon's presence in the large and fast-growing middle-market segment.
The $13.4 billion purchase price will consist of $7 billion in cash and $6.4 billion worth of Aon stock.
"The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values," Aon CEO Greg Case said in a statement.
Aon noted the transaction is expected to be dilutive to adjusted earnings per share (EPS) in 2025, breakeven in 2026, and accretive in 2027 and beyond, with positive impacts to free cash flow beginning in 2026.
The company added that its acquisition of NFP is expected to generate more than $2.8 billion in pretax gains, excluding about $400 million in expected one-time transaction and integration costs.
New York-based NFP had property/casualty revenue of $738 million as well as $1.1 billion in revenue from benefits and life, and $362 million in revenue from its wealth and retirement business in 2022.
The acquisition is expected to close in mid-2024.
Shares of Aon fell 7% to $291.82 in early Wednesday trading.