Aon expands mid-market reach with $17 billion USI deal

Insurance brokerage USI, acquired by KKR for $4.3 billion in 2017, has been sold to Aon PLC in a deal valued at $17 billion including debt. The acquisition aims to expand Aon's mid-market presence among medium-sized businesses. USI offers risk management, health insurance, and retirement plan services, generating about $3 billion in annual revenue.

The purchase price, $17 billion, or $16.7 billion net of tax attributes, equates to roughly 14.5 times on a synergized trailing twelve-month adjusted EBITDA basis. Aon plans to finance the transaction, along with related expenses, through new debt across various maturities, contingent on market conditions. Combining forces, Aon aims to create the leading U.S. middle-market platform, enhance its contextual advantage, and fuel organic growth.

Aon's CEO, Greg Case, expressed optimism about the deal in a statement. The transaction marks the latest exit for KKR, which remains a significant player in the industry following its record $1.29 billion in quarterly asset sales this year.