Aon completes £10.6bn NFP acquisition ‘faster than anticipated’

Aon has announced that it has completed its £10.6bn acquisition of NFP.

The deal, which expands Aon’s presence in the middle-market segment, will see NFP operate as an independent and connected platform delivering risk capital and human capital capabilities from across Aon.

The transaction, which was announced in December 2023, was completed yesterday (25 April 2024), which Aon said was a “faster-than-anticipated close date”.

“The faster than anticipated close date contributes to expected accretion and free cash flow benefit realisation a year earlier than modelled at announcement,” the broker added.

UBS Investment Bank served as the exclusive financial advisor to Aon on the transaction.

“It is a historic day for our firm as we welcome NFP to Aon and work together to help clients address increasing volatility across risk and people issues,” said Greg Case, chief executive of Aon.

“With high performing teams and leading content and capability – further enabled by our Aon Business Services operating platform – we will create more value for our clients, while also enhancing long-term shareholder value creation for investors.”

The deal

Aon acquired NFP from funds associated with NFP’s primary capital backer Madison Dearborn Partners (MDP) and funds linked with HPS Investment Partners – both of which also hold investments in the Ardonagh Group.

After the acquisition was announced, Insuramore stated it was the “largest deal ever announced in the global insurance broking sector”.

NFP will continue to be led by chief executive Doug Hammond, who will report into Aon president Eric Andersen.

“Doug and his team have built an exceptional client-centred business and we are focused on using our Aon Business Services platform to scale delivery of new capabilities to small and middle market clients across Aon and NFP,” Andersen said.

Hammond added: “With Aon’s acquisition of NFP now complete, we are starting an exciting new chapter in our company’s history.

“We remain focused on both advancing a culture colleagues want to be part of and working together to contribute to our collective growth and success.”