Merger will speed cross-selling of different services
Merging Towers Perrin and Watson Wyatt will save just 2.4% in expenses, but should generate business growth, according to chief executive John Haley, Dow Jones reports.
The new firm will bring "broader, deeper, more comprehensive services to our clients," said Haley.
World’s biggest
Towers Watson is now the world's biggest employee-benefits consultancy by revenue, displacing the Mercer unit of Marsh & McLennan, according to Shlomo Rosenbaum, an analyst at Stifel, Nicolaus. Towers Watson is expected to have annual sales of about $3.2bn with 14,000 employees.
Prior to the merger, Watson Wyatt held second place, while Towers Perrin ranked fifth, by Rosenbaum's estimates.
Towers Watson President and Chief Operating Officer Mark Mactas, said: "Put together, we derive 60% of our annual revenue from North America, and 40% outside of that region" with 55% of its total coming from the US.
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