NFP CEO Doug Hammond will continue to lead the business within Aon
Global professional services firm Aon has acquired NFP, a middle-market provider specializing in risk, benefits, wealth, and retirement plan advisory solutions. The acquisition, announced through a definitive agreement, saw Aon gaining NFP from Madison Dearborn Partners (MDP) and HPS Investment Partners.
Under the terms of the transaction, Aon secured NFP for a total estimated consideration of $13.4 billion at the time of the close, with $7 billion in cash and $6.4 billion in Aon stock.
“We have continually evolved our leading capabilities to better serve our clients' growing needs amidst increasing volatility across the marketplace. The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values,” says Greg Case, Aon CEO. “Doug and NFP have built an exceptional team, with a complementary one-firm mindset, and we expect to both learn from their entrepreneurial culture and share with them the depth and breadth of our capabilities to create more value for clients, colleagues and shareholders.”
Founded in 1999, NFP has since become a major player in property and casualty brokerage, benefits consulting, wealth management, and retirement plan consulting. Doug Hammond, chairman and CEO of NFP, will continue to lead the business within Aon, maintaining an independent but connected platform. He will report directly to Aon president Eric Andersen.
“This is an exciting milestone in NFP's evolution that reflects the tremendous quality of the business we've built and the exceptional people who drive our success. Aon is an industry leader in delivering Risk Capital and Human Capital capabilities and this acquisition is compelling for many reasons. Our clients will benefit from Aon's global resources and distribution, while our people will have more opportunities to accelerate the growth of NFP,” Hammond says.
“With aligned values and capabilities across different-sized market segments, we look forward to working with the Aon team to elevate performance and make the transaction successful for everyone involved,” he adds.
“NFP has one of the most high-performing leadership teams and cultures that I've come across in the marketplace in my 30-plus years in the business. NFP's team shares our one-firm mindset and commitments to client excellence and growth, and I'm looking forward to working with Doug and all the colleagues at NFP when they join our firm as an Aon company,” says Andersen.
The transaction, subject to customary conditions including regulatory approvals, is expected to close in mid-2024. Both Aon and NFP will continue to operate independently until the closing date, with financial metrics calculated conservatively based on a June 2025 closing date.
