Aon Completes Merger With Hewitt

(October 4, 2010) — Aon Corporation has announced the completion of ts merger of Hewitt Associates with Aon Consulting to have a combined revenue of $4.3 billion and a workforce of 29,000 worldwide.

“The completion of this merger marks yet another important milestone in the history of Aon and is an industry-changing event that will create new standards in the human capital space,” said Greg Case, president and chief executive officer of Aon, in a statement. “Through Aon Hewitt, we will provide our clients with a broader portfolio of innovative products and services focused on what we believe are two of the most important topics facing today’s global economy – risk and people.” Aon said the merger is expected to generate about $355 million in annual cost savings across Aon Hewitt in 2013 – driven largely from reduction in back-office areas, public company costs, management overlap and leverage of technology platforms.

The $4.9 billion acquisition to create Aon Hewitt strengthens the firm’s drive into human resources consulting. The transaction is the biggest deal ever involving a benefit consultant, surpassing last year’s merger of Towers, Perrin, Forster & Crosby Inc. and Watson Wyatt Worldwide Inc., a $3.5 billion transaction, Business Insurance reported.

Aon Hewitt has 49% of its revenue from consulting services, 40% from benefits administration and 11% from human resources business process outsourcing, according to a company statement. In the outsourcing field, Hewitt’s $2 billion in revenues were about 10 times that of Aon Consulting.

Aon Hewitt chairman and chief executive officer Russ Fradin, who held the same titles at Lincolnshire, Ill.-based Hewitt, added: “Our focus remains constant-to serve clients exceptionally well every day. Clients can be confident Aon Hewitt has the expertise and experience to serve as a true partner, helping them with their most pressing business challenges.”