Aon (AON) Acquires Hewitt Associates (HEW) For $4.9 Billion

On July 12, 2010, Aon Corp. (NYSE: AON) announced an agreed to acquire human resources company Hewitt Associates Inc. (NYSE: HEW) to expand its consulting operations, in a deal that is worth $4.9 billion in cash and stock.

According to the terms of the deal, the insurance broker will pay $50 for each share of Hewitt, representing a 41 percent premium over the company's closing price of $35.40 on Friday.

Stockholders of Hewitt will receive $25.61 per share in cash and about 0.64 percent of a share in Aon stock. Aon will pay $2.45 billion in cash and 634 million shares.

The transaction is expected to close by mid-November, subject to customary closing conditions, regulatory approvals, as well as approval by both Aon and Hewitt stockholders.

Credit Suisse acted as financial advisor to Aon, and Sidley Austin LLP is serving as legal counsel. Citigroup Global Markets Inc. served as exclusive financial advisor to Hewitt, and Debevoise & Plimpton LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel.

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