Aon to Sell Majority of Wealth Business in $2.7 Billion Deal

Aon to divest majority of NFP's wealth business in $2.7 billion deal. Aon, a world leader in risk management and insurance brokerage, will sell a majority of its wealth business to NFP Corp. The deal is valued at $2.7 billion and is expected to close in the second half of 2023. Aon's risk management and insurance brokerage business accounts for 66.9% of its net sales, while its human capital consulting services business accounts for 33.1%. The company's net sales are distributed geographically across the United States, Americas, the United Kingdom, Ireland, Europe/Middle East/Africa, and Asia/Pacific.

Aon plc, a leading global professional services firm, is set to sell a significant majority of its NFP's wealth business to Madison Dearborn Partners, LLC. The deal, valued at $2.7 billion, is expected to close in the fourth quarter of 2025. The sale includes Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth, and related platforms.

The transaction reflects Aon's strategic focus on its core risk capital and human capital capabilities. The company aims to strengthen its capital position and enable greater flexibility for high-return growth investments. Greg Case, CEO of Aon, stated, "This transaction reinforces our ongoing commitment to investing in and growing our core Risk Capital and Human Capital capabilities."

Madison Dearborn Partners, a leading private equity investment firm, will acquire the businesses for a total consideration estimated to be $2.7 billion at the time of close. The deal is expected to result in total after-tax cash proceeds of approximately $2.2 billion for Aon. The transaction is subject to customary closing conditions, including regulatory approvals.

The sale is part of Aon's broader strategy to accelerate its Aon United plan, which aims to serve clients' risk and people needs with distinction. Aon's net sales are distributed geographically across various regions, including the United States, Americas, the United Kingdom, Ireland, Europe/Middle East/Africa, and Asia/Pacific. The company's risk management and insurance brokerage business accounts for 66.9% of its net sales, while its human capital consulting services business accounts for 33.1%.

The transaction will see the acquired businesses operate under a unified brand name, led by Michael LaMena as CEO and Carl Nelson as President. Madison Dearborn Partners will support the growth of these businesses through organic growth and acquisitions, enhancing the value delivered to clients and creating new opportunities for employee development.

References:
[1] https://www.investing.com/news/stock-market-news/aon-nears-sale-of-nfp-wealth-business-to-madison-dearborn-for-3-billion--report-93CH-4220625
[2] https://www.prnewswire.com/in/news-releases/aon-signs-definitive-agreement-to-sell-significant-majority-of-nfps-wealth-business-to-madison-dearborn-partners-302545024.html