LONDON (dpa-AFX) - Willis Towers Watson Public Limited Company (WTW), an advisory, broking and solutions company, said on Wednesday that it has agreed to acquire specialized broker Newfront in a transaction valued at up to $1.3 billion.
The deal includes $1.05 billion upfront, comprising $900 million in cash and $150 million in equity, along with a $250 million contingent payment, payable primarily in equity to Newfront employee-shareholders upon achieving certain performance targets.
An additional $150 million, also payable primarily in equity, may be paid after the third anniversary of closing if Newfront exceeds revenue-growth targets. WTW will also provide $100 million in equity-based retention incentives for Newfront employees through 2031.
Newfront has delivered strong expansion, growing organic revenue at a 20% CAGR between 2018 and 2024. WTW expects to achieve $35 million of run-rate cost synergies by the end of 2028. The acquisition is projected to be approximately $0.10 dilutive to adjusted EPS in 2026 but accretive in 2027.
Following the merger, Newfront's two business segments - Business Insurance and Total Rewards - will be integrated into WTW's Risk & Broking (R&B) and Health, Wealth & Career (HWC) segments, respectively.
The transaction is expected to close during the first quarter of 2026
'The Newfront team has built a broking business powered by exceptional technology that offers a smart, fast and efficient client experience and complements our own technology investments. This combination strengthens our presence in the U.S. middle market, accelerates our technology and specialty strategies, and enables the delivery of an integrated, end-to-end technology platform that will drive growth, enhance operational efficiency and better serve our clients,' said Carl Hess, WTW's Chief Executive Officer.
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