Aon Corporation is purchasing HR outsourcing business Hewitt Associates for just under $ 5 billion. The combined Aon Hewitt Division will provide many of the services Hewitt did before the merger. The companies estimate that this merger will eventually save the companies $ 355 million each year.
Article resource – Aon Corporation purchases Hewitt Associates, creates Aon Hewitt by Personal Money Store
The Aon Hewitt purchase
Announced this morning and expected to close in November, the Aon purchase of Hewitt Associates will cost $ 4.9 billion. Hewitt is going to be getting over 40 percent more per share than they are currently trading with. Current Hewitt stockholders will get $ 25.61 in cash and .63 pieces of stock in Aon Corporation. Aon Hewitt will keep the same CEO and business model as Hewitt Associates while combining back-office operations with Aon. Hewitt Associates stock rose while Aon stock fell on this news. This new company will be based in Illinois. There are no official estimates on how many jobs will be cut in this merger.
The business Aon works in
Aon Corporation is a global “risk management and human capital consulting services” business. Aon offers clients advice on managing risk, along with insurance brokerage services. The company trades stock on the NYSE, and is classified as a financial business. Aon Corporation actually split three separate insurance businesses off of their operations just in August of last year.
How Hewitt Associates operates
Hewitt Associates is a business that focuses on human resource outsourcing. Hewitt offers HR management, benefits, and other administrative services. A small portion of Hewitt’s business also includes consulting. Hewitt provides “commercial service and supply” grounding to Aon’s business. Hewitt Associates has been through some major restructuring lately. Latin American operations have been spun off, and a company called HRAdvance Inc. was combined with Hewitt in May of 2010.
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