Aon is nearing a roughly $17 billion deal, including debt, to acquire insurance brokerage USI from KKR, the Wall Street Journal reported on August 30. The report, cited by CNBC, did not specify the exact equity value or the structure of the transaction, but the total consideration would include debt.
The acquisition would bring USI, a major player in the mid-market insurance brokerage segment, under Aon's umbrella. USI has been owned by KKR since 2015, and the deal would mark a significant exit for the private equity firm.
A $17 billion bet on mid-market brokerage
At $17 billion including debt, the deal would be one of the largest in the insurance brokerage industry in recent years. Aon, one of the world's biggest insurance brokers, would gain USI's extensive client base and its network of offices across the United States. The move would strengthen Aon's position in the mid-market, a segment where USI has a strong presence.
The report did not provide details on how the deal would be financed or whether regulatory approvals would be required. It also did not indicate a timeline for a formal announcement.
KKR's exit from USI
KKR acquired USI in 2015, and the reported sale price would represent a substantial return on that investment. The private equity firm has been active in the insurance sector, and this deal would be one of its largest exits in the space.
Neither Aon, USI, nor KKR has commented publicly on the report. The Wall Street Journal cited sources familiar with the matter, but no official confirmation has been made.
The question now is whether the deal will be finalized and announced, and at what price and terms. The report suggests negotiations are in advanced stages, but until an official statement is made, the details remain subject to change.