Aon said on Monday it will buy rival USI Insurance Services in a $17 billion deal from private equity firm KKR. The acquisition, announced by the insurance brokerage, marks one of the largest transactions in the sector this year.
The deal brings together two major players in the insurance brokerage market. USI, which has been owned by KKR, will become part of Aon's operations, though the companies did not disclose further terms beyond the purchase price.
A $17 billion price tag
The all-cash transaction values USI at $17 billion, according to Aon's announcement. The price reflects the scale of USI's business and its position as a rival to Aon in the brokerage space.
KKR exits its investment
KKR, which has held USI as a portfolio company, will sell its stake as part of the deal. The private equity firm's exit comes after a period of ownership that saw USI grow its operations.
What happens next
The deal is subject to regulatory approvals and other customary closing conditions. Aon and USI have not provided a timeline for when the transaction is expected to close, leaving the completion date as the key open question.