Insurance brokerage Aon is nearing an agreement to acquire USI Insurance for approximately $17 billion, including debt, with an announcement possible as soon as Monday.
USI, owned by private equity firm KKR, is based in Valhalla, New York and generated approximately $3 billion in annual revenue last year. The brokerage specializes in risk management, employee benefits and retirement consulting—a segment where Aon sees growth opportunity.
For Aon, the acquisition accelerates expansion into the midsize business market. The deal is projected to boost earnings per share by 2028, a key catalyst for a $75 billion market-cap stock trading at $355.40 on Friday. Aon has momentum after beating Q2 estimates with adjusted earnings of $3.81 per share on July 29, though shares have declined 5.6 percent since that report.
KKR acquired USI from Onex in 2017 and increased its stake to become the largest shareholder in 2023. The sale fits a pattern of portfolio exits this year: KKR also divested data-center cooling firm CoolIT and Circor's commercial and aerospace business. These moves contributed to a record $1.29 billion in asset sales for the quarter ended June 30.
