Aon’s stock fell 1.5% in pre-market trading after the company announced a definitive agreement to acquire USI Insurance Services from private equity firm KKR for $17.0 billion in cash.
The transaction, valued at $16.7 billion net of debt assumed, represents approximately 14.5 times synergized trailing twelve-month adjusted EBITDA. USI, the tenth-largest U.S. insurance broker, generates roughly $3 billion in annual revenue and employs more than 10,500 staff across nearly 200 offices nationwide. The target specializes in property and casualty, employee benefits, and retirement solutions for the middle market.
Funding will be provided entirely through new debt, and Aon does not expect to repurchase shares in the near term, prioritizing debt repayment instead. Chief Executive Greg Case described the acquisition as a strategic extension of the company’s “context advantage” model.
The deal marks Aon’s second major private-equity-backed acquisition in roughly two years, following the approximately $13.4 billion purchase of NFP Corp. in 2024. Analysts at UBS maintained a Neutral rating on Aon with a $387 price target ahead of the announcement.
Broader market conditions showed a mildly risk-off tone, with the S&P 500, Dow Jones, and Nasdaq trading modestly lower in pre-market trading. The move comes as insurance brokerage peers including Marsh & McLennan, Arthur J. Gallagher, and Willis Towers Watson face sector-wide pressure.
