Game changing $18 billion global merger

by Will Ashworth30 Jun 2015
The insurance landscape has been considerably altered with the $18 billion merger of Willis Group Holdings and Towers Watson.

“These are two companies with world-class brands and shared values,” said Dominic Casserley, Willis’ CEO. “The rationale for the merger is powerful – at one stroke, the combination fast-tracks each company’s growth strategy and offers a truly compelling value proposition to our clients. We will advise over 80 per cent of the world’s top-1000 companies, as well as having a significant presence with mid-market and smaller employers around the world.”

The combination of Willis, the third largest insurance broker, and Towers Watson brings together two highly complementary businesses to create an integrated global advisory, broking, and solutions provider to serve a broad range of clients in existing and new business lines.

“We see numerous opportunities to enhance our growth profile by offering integrated solutions that leverage Willis’ global distribution network and superb risk advisory and re/insurance broking capabilities to deliver a more robust set of analytics and product solutions across a broader client base, including accelerating penetration of our Exchange Solutions platform into the fast growing middle-market,” said John Haley, Chairman and Chief Executive Officer of Towers Watson.
The combined company will have approximately 39,000 employees in over 120 countries, and pro forma revenue of approximately $8.2 billion.

“We look forward to bringing Towers Watson’s innovative solutions to our clients alongside our broking and advisory services,” said Haley. “The opportunity to deliver significant savings to our growing middle market client base with Towers Watson’s market-leading private exchange platform is particularly attractive.”

Upon completion of the merger, terms of which are detailed below, Willis shareholders will own approximately 50.1 per cent and Towers Watson shareholders will own approximately 49.9 per cent of the combined company on a fully diluted basis.