Aon Corporation to acquire Hewitt Associates in $4.9-billion merger

Aon Corporation (NYSE: AON) is acquiring Hewitt Associates Inc. (NYSE: HEW), an HR consulting and outsourcing company, for approximately $4.9 billion.
Following the close of the transaction, Aon intends to integrate Hewitt with its existing consulting and outsourcing operations (Aon Consulting) and operate the segment globally under the newly created Aon Hewitt brand.
The transaction is expected to close by mid-November 2010, subject to customary closing conditions, regulatory approvals, as well as approval by both Aon and Hewitt stockholders.
In a statement, Aon said the strategic rationale for the merger is to create a global leader in human capital solutions.
“This agreement reflects our ongoing efforts to ensure Aon’s associates, capabilities and technology remain at the forefront of our industry, providing distinctive client value,” said Case. “As we continue to grow our business, this merger will give us a broader portfolio of innovative products and services focused on what we believe are two of the most important topics in the global economy today – risk and people.”
Aon said it expects Aon Hewitt to generate revenues of $4.3 billion and consist of 29,000 associates globally.
Russ Fradin, chairman and CEO of Hewitt, will serve as chairman and CEO of Aon Hewitt, reporting to Aon Corporation CEO Greg Case.