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

Professional services firm Aon Plc is nearing an agreement to acquire insurance brokerage USI Insurance Services from private equity firm KKR in a deal valued at approximately $17 billion, including debt. The potential transaction was first reported by The Wall Street Journal, citing people familiar with the matter.

The Reported Transaction

According to the report published Sunday, negotiations are in their final stages, and a formal announcement could be made as soon as Monday, provided the talks conclude successfully. The deal would be a significant consolidation move within the insurance brokerage industry.

Reuters noted that London-headquartered Aon and Valhalla, New York-based USI could not be immediately reached for comment. KKR, a New York-based investment firm, declined to comment on the speculation.

Strategic Rationale and Financial Impact

For Aon, the acquisition would significantly expand its footprint in the U.S. middle-market segment, where USI has a strong presence. The report suggested the combination would enhance capabilities for serving midsize businesses.

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Financially, the deal is expected to be accretive to Aon's earnings per share (EPS) by 2028, according to the Journal. Investors will be watching for official confirmation and further details on expected synergies and the integration plan.

KKR's Profitable Exit

This sale would mark a major exit for KKR and its co-investors. KKR, along with Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), acquired USI from Onex Corporation in 2017 for $4.3 billion, including debt.

Since that time, KKR has made additional investments of more than $1 billion in USI, becoming its largest shareholder. A sale at the reported $17 billion valuation would represent a substantial return on the firm's investment and follows a series of other large divestitures by KKR.