NU Online News Service, Oct. 4, 11:59 a.m. EDT
Aon Corporation has completed its acquisition of Hewitt Associates, Chicago-based broker Aon announced.
Aon announced on July 11 its plans to acquire Hewitt–a human resource consulting and outsourcing solutions firm based in Lincolnshire, Ill.–for approximately $4.9 billion in stock and cash. Aon said it will merge Hewitt with an Aon subsidiary, creating "Aon Hewitt."
Greg Case, president and chief executive officer of Aon, said, "Through Aon Hewitt, we will provide our clients with a broader portfolio of innovative products and services focused on what we believe are two of the most important topics facing today's global economy–risk and people."
Russ Fradin, who becomes chairman and chief executive officer of Aon Hewitt, added, "As Aon Hewitt, we are a stronger, more global industry leader, bringing innovative solutions and insights to organizations wherever they do business."
Aon said combined revenues from fiscal year 2009 for the firms that will make up Aon Hewitt consist of 49 percent from consulting services, 40 percent from benefits administration and 11 percent from human resources business process outsourcing.
Aon said, "Product portfolio will provide for significant cross-sell opportunities including the marketing of Hewitt's benefits administration and HR business process outsourcing services to Aon's clients, as well as the marketing of Aon's industry-leading risk services product portfolio to Hewitt's clients."
Aon added that the transaction is expected to generate approximately $355 million in annual cost savings across Aon Hewitt in 2013, primarily from reduction in back-office areas, public company costs, management overlap and leverage of technology platforms.
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