Aon Corp. said it has a definitive agreement to sell its discontinued AIS Management Group unit to Mercury Insurance Group, a California-based personal automobile insurance carrier, for $120 million.
The Chicago-based insurance broker said terms of the sale include $120 million cash plus a potential earn-out of up to $34.7 million payable over the two-year period following the close of the transaction.
The sale includes business transacted under the Auto Insurance Specialists Inc., PoliSeek and Aon Recreation Insurance brands. According to their Web sites, the brands are providers of personal lines insurance.
The firm said the sale is consistent with its previously announced plan to shape the firm around risk management and commercial lines insurance brokerage, reinsurance brokerage, and human capital consulting.
The transaction is expected to close in the first quarter of 2009.
AIS Management Group was placed into discontinued operations for the third quarter and further financial details will be provided in Aon's third-quarter earnings call on Oct. 31.
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