Aon’s stock fell 1.5% in pre-market trading after the company unveiled a definitive agreement to acquire USI Insurance Services from private equity firm KKR for $17.0 billion in cash.
The transaction, one of the largest in the insurance brokerage sector in recent years, values USI at a net purchase price of $16.7 billion. The target company ranks as the tenth-largest U.S. insurance broker, generating roughly $3 billion in annual revenue and employing more than 10,500 staff across nearly 200 offices. USI’s business focuses on property and casualty, employee benefits, and retirement solutions tailored to the middle market.
Aon plans to finance the entire deal with new debt, and indicated it does not expect to repurchase shares in the near term as it prioritizes debt repayment. The net purchase price represents approximately 14.5 times synergized trailing twelve-month adjusted EBITDA, according to the company.
Chief Executive Greg Case described the acquisition as an extension of Aon’s “context advantage” strategy. The deal marks the company’s second major private equity-backed acquisition in roughly two years, following the $13.4 billion purchase of NFP Corp. in 2024.
Ahead of the announcement, UBS maintained a Neutral rating on Aon with a $387 price target. The broader market showed a cautious tone, with the S&P 500, Dow Jones, and Nasdaq trading modestly lower in pre-market trading. Peer insurance brokers including Marsh & McLennan, Arthur J. Gallagher, and Willis Towers Watson also faced pressure during the session.
