Aon is reportedly close to finalizing a deal to acquire insurance broker USI from private-equity firm KKR for approximately $17 billion, including debt, according to The Wall Street Journal as cited by CNBC World [1]. The agreement could be announced as soon as Monday, with sources familiar with the matter providing these details [1]. USI, based in Valhalla, New York, specializes in risk management, employee benefits, and retirement consulting, and generates about $3 billion in annual revenue [1].
KKR initially acquired USI from Onex in 2017 and increased its ownership stake to become the largest shareholder in 2023 [1]. This potential sale of USI follows a series of notable exits for KKR, including the sales of CoolIT and Circor's commercial and defense aerospace business earlier in the year. KKR reported a record $1.29 billion in asset sales for the quarter ending in June [1].
For Aon, a global insurance broker and consultancy with a market capitalization of $75 billion, the acquisition is expected to expand its reach into midsize businesses and could boost its earnings per share as soon as 2028, according to a person familiar with the matter cited by the Journal [1]. Aon recently reported second-quarter adjusted earnings of $3.81 per share on July 29, surpassing Wall Street analysts' estimates; however, the company's stock has declined by 5.6% since then, closing at $355.40 on Friday [1].
No analyst opinions or additional forward-looking statements beyond the potential EPS boost in 2028 were provided in the article [1].
CONCLUSION
Aon's potential $17 billion acquisition of USI from KKR marks a significant move to strengthen its position in the midsize business insurance market. The deal is expected to enhance Aon's earnings per share by 2028 and follows a series of major asset sales by KKR. Market participants are likely to view this as a high-impact transaction with strategic implications for both companies.