Aon Nears $17 Billion Deal to Acquire KKR-Backed USI Insurance, WSJ Reports

Insurance and consulting giant Aon is nearing a deal to acquire USI Insurance from private equity firm KKR & Co. for approximately $17 billion including debt, according to a Wall Street Journal report. Citing people familiar with the matter, the report on Sunday stated that a formal announcement could be made as soon as Monday.

Deal Details and Valuation

The proposed transaction values USI, which generates around $3 billion in annual revenue, at a multiple of approximately 5.7 times its sales. For Aon, which commands a market value of roughly $75 billion, the acquisition represents a significant strategic investment to bolster its brokerage operations.

For KKR, the sale would mark a highly successful exit from its investment. The private equity firm, alongside Canadian pension investor CDPQ, acquired USI from Onex Corp. in 2017 for $4.3 billion. KKR has since increased its ownership to become USI's largest shareholder.

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Aon's Middle-Market Expansion

This potential deal underscores Aon's strategic focus on expanding its presence in the lucrative middle-market insurance segment. The move follows a similar large-scale transaction in 2024, when Aon acquired NFP, another mid-market property and casualty broker, for about $13 billion.

This strategy of bolt-on acquisitions comes after Aon's attempted mega-merger with rival Willis Towers Watson collapsed in 2021. That deal was terminated after facing significant antitrust objections from the U.S. Department of Justice, a factor that will likely be considered by investors and regulators as they assess the USI transaction.