Aon plc (NYSE:AON) shares are trading lower during Monday’s premarket session. The company entered into a definitive agreement to acquire USI from KKR & Co. Inc. (NYSE:KKR) and other shareholders for $17.0 billion.
The acquisition price inlcudes $16.7 billion net of approximately $278 million in certain tax attributes, implying about 14.5x synergized trailing 12-month adjusted EBITDA.
Aon plans to finance the acquisition, transaction expenses and other costs through new debt across various maturities, subject to market conditions. As of June 30, the company’s cash and cash equivalent stood at $1.06 billion.
Acquisition To Expand U.S. Middle-Market Platform
USI offer property and casualty, employee benefits, personal risk and retirement solutions, generating approximately $3 billion in annual revenue with more than 10,500 employees across nearly 200 U.S. offices.
