Aon closes in on $17 billion deal for KKR-backed USI

Aon is nearing a deal valued at approximately $17 billion, including debt, to acquire insurance brokerage USI from private equity firm KKR.

Based in Valhalla, New York, USI is an insurance brokerage and consulting firm offering risk management, employee benefits, and retirement solutions. The company generates approximately $3 billion in annual revenue.

KKR acquired USI from private equity firm Onex in 2017 and gradually expanded its ownership. By 2023, KKR had become USI’s largest shareholder.

The potential sale of USI would add to KKR’s recent string of exits, which includes the divestment of data-center cooling company CoolIT and Circor’s commercial and defense aerospace business. KKR reported a record $1.29 billion in asset sales for the quarter ended in June.

For Aon, acquiring USI could strengthen its presence among midsize businesses and potentially increase its earnings per share as early as 2028, according to The Wall Street Journal.

Aon, which has a market capitalization of about $75 billion, reported adjusted second-quarter earnings of $3.81 per share, surpassing analysts’ expectations. However, its shares have since declined 5.6%, closing at $355.40 on Friday.