Aon to acquire NFP from Madison Dearborn, HPS for $13.4bn

Aon has signed a definitive agreement to acquire NFP, a middle market property and casualty broker, benefits consultant, wealth manager and retirement plan adviser, in a transaction valued at $13.4 billion at closing.

The purchase price will comprise $7 billion in cash and Aon stock valued at $6.4 billion, said a Dec. 20 release.

Aon will acquire NFP from funds affiliated with NFP’s main capital sponsor, Madison Dearborn Partners, and also from funds affiliated with HPS Investment Partners.

Madison Dearborn Partners is a private equity investment firm based in Chicago. HPS Investment Partners is a global, credit-focused alternative investment firm with approximately $107 billion of assets under management.

The transaction is expected to close in mid-2024.

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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.

The acquisition of NFP will expand Aon’s presence in the “large and fast-growing middle market segment, with capabilities across risk, benefits, wealth and retirement plan advisory,” the release noted.

Source: Pension& Investments

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