Aon to pay $4.9 billion for Hewitt Associates |
| MarketWatch - Jul 12, 2010 |
Risk management consultant Aon Corp. announced Monday it will buy Hewitt Associates for $4.9 billion, expanding its global footprint in human resources consulting.
The deal values Hewitt /quotes/comstock/13*!hew/quotes/nls/hew (HEW 46.86, +11.46, +32.37%) shares at $50 a piece, a 41% premium to the company's closing price last Friday. Half of the transaction will be paid in cash and the other half in Aon /quotes/comstock/13*!aon/quotes/nls/aon (AON 35.53, -2.81, -7.33%) stock.
For each share held, Hewitt owners will receive $25.61 in cash and 0.6362 units of Aon common stock.
Shares of Hewitt closed at $35.40 on July 9, and traded up 32% Monday morning. Aon shares closed at $38.34 on Friday and fell 6.4% in early Monday trading.
Aon expects the deal to be 8.4% dilutive to earnings on a GAAP-basis in 2011 and sees returns from the deal trickling into its earning starting 2012, for 1.2% accretion. In total, stockholders can expect $1.5 billion of net value generated from the merger, management reported in the deal press release.
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- Posted: 2010-07-12 09:24:43
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