Aon has announced a definitive agreement to acquire USI Insurance Services from KKR and other shareholders for approximately $17 billion to expand its U.S. middle-market presence. The transaction is expected to deliver $395 million in annual synergies and become accretive to adjusted earnings per share by 2028. Following the announcement, Aon's shares declined by 9.53% to $321.52 due to investor uncertainty regarding the acquisition. Despite the stock drop, Wells Fargo analysts set a new price target of $383, suggesting a potential upside of 19%.
Aon agreed to acquire USI Insurance Services for $16.7 billion in cash to bolster its U.S. middle-market presence, despite initial investor skepticism.
Read the full storyInsurance brokerage giant Aon agrees to a $17 billion acquisition of USI Insurance, triggering a share price decline following the deal's announcement.
Aon enters a $17 billion definitive agreement to acquire insurance broker USI from KKR, targeting $395 million in annual synergies by 2028.