12/07/2010

By Graham Buck

Aon Corp has concluded a $4.9 billion deal to acquire consulting and outsourcing group Hewitt Associates.

The world’s second-biggest insurance broking and risk management group will almost triple the size of its consulting operations as a result of the acquisition.

Aon expects to conclude the deal, which values Hewitt at $50 per share, or a 41% premium over last Friday’s closing price, by mid-November. The group anticipates that by 2013 it will achieve annual savings of $355 million through cost cuts in back offices and elsewhere.

Hewitt has around 3,000 clients and the two groups’ merged consulting and outsourcing operations, to be named Aon Hewitt, will have combined revenues of $43 billion. It will be headed by Hewitt’s chairman and chief executive Russ Fradin.

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