Aon to acquire NFP, a leading middle-market provider of risk, benefits, wealth and retirement plan advisory solutions

• Expands Aon's presence in large and fast-growing middle-market segment, with opportunity to enhance distribution through the firm's Aon Business Services platform to deliver more value to clients
• Brings together two cultures with a shared commitment to client excellence, colleague opportunity and a one-firm mindset
• NFP will operate as an independent but connected platform, going to market as "NFP, an Aon company"
• Purchase price estimated to be $13.4B at the time of close, representing a ~15x multiple on seller-adjusted estimated EBITDA at closing
• Drives EPS accretion over the long-term and contributes to strong combined free cash flow profile from ongoing strong revenue growth 

DUBLIN, Dec. 20, 2023 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced the signing of a definitive agreement to acquire NFP, a leading middle market property and casualty broker, benefits consultant, wealth manager and retirement plan advisor, from funds affiliated with NFP's main capital sponsor, Madison Dearborn Partners (MDP), and funds affiliated with HPS Investment Partners. Under the terms of the transaction, Aon will acquire NFP for a total consideration estimated to be $13.4B at the time of close, which will be funded by $7B of cash and $6.4B of Aon stock.

The acquisition of NFP expands Aon's presence in the large and fast-growing middle-market segment, with capabilities across risk, benefits, wealth and retirement plan advisory. The firm's Aon United strategy, Aon Business Services operating platform and investments in advanced analytics have driven a long-term track record of results and the acquisition will enable the combined firms to efficiently deliver content and capabilities to the middle-market segment. Doug Hammond, chairman and CEO of NFP, will continue to lead the business as an independent but connected platform within Aon, reporting to Eric Andersen, president of Aon.

"We have continually evolved our leading capabilities to better serve our clients' growing needs amidst increasing volatility across the marketplace," said Greg Case, CEO of Aon. "The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values. Doug and NFP have built an exceptional team, with a complementary one-firm mindset, and we expect to both learn from their entrepreneurial culture and share with them the depth and breadth of our capabilities to create more value for clients, colleagues and shareholders."