Summary
Aon plc has completed the sale of its benefits administration and business process outsourcing business (the "Tempo Business") to Tempo Acquisition, LLC, an entity affiliated with The Blackstone Group L.P., for a total consideration of up to $4.8 billion. The transaction, which closed on May 1, 2017, involved an initial cash payment of $4.3 billion, subject to customary adjustments, and a deferred consideration component of up to $500 million. This divestiture represents a significant strategic move for Aon, allowing it to focus on its core insurance brokerage and risk management services. Investors should note that Aon has provided unaudited pro forma condensed consolidated financial information to illustrate the financial impact of this transaction. This information is crucial for understanding the company's financial position and performance post-divestiture and for assessing how the proceeds from the sale might be utilized, such as for debt reduction, share repurchases, or strategic investments in its continuing operations.
Key Highlights
- 1Aon plc completed the sale of its benefits administration and business process outsourcing (Tempo Business) on May 1, 2017.
- 2The buyer is Tempo Acquisition, LLC, an entity formed and controlled by affiliates of The Blackstone Group L.P.
- 3The total purchase price is $4.3 billion in cash at closing, plus deferred consideration of up to $500 million.
- 4The sale includes the outstanding equity interests in the business subsidiaries and certain related assets.
- 5Aon also entered into customary ancillary agreements related to the sale.
- 6The company has filed unaudited pro forma condensed consolidated financial information to reflect the impact of this disposition.