On Mar 19, Aon Consulting, the global benefits and human capital consulting business of Aon Corp. (AON), announced that it has entered into a definitive agreement with JPMorgan Chase & Co.’s (JPM) JPMorgan Retirement Plan Services, LLC, to acquire one of its division, JPMorgan Compensation and Benefit Strategies. However, the value and terms of the deal remain undisclosed. The transaction is expected to close by Mar 31, 2010.
With this acquisition, AON will be able to capitalize on various valuable growth opportunities that are crucial for the company amidst the volatility due to ongoing market challenges. JPMorgan’s compensation and benefit strategies provides effective, compliant and key actuarial-based solutions, which will be beneficial to AON’s distinctive service offering to its clients, thereby gaining client confidence and increasing clientele base.
Additionally, acquiring JPMorgan’s employee benefits unit will also expand AON’s already strong geographic presence across the U.S., which chiefly includes New York, Boston, Chicago, St. Louis, Dallas, Denver, Los Angeles and San Francisco. Further, JPMorgan’s 150 talented personnel complements AON’s global team in providing employee benefit program solutions in areas such as complex union negotiations, benefit reimbursements for government contracts and benefit issues unique to professional services firms. Hence, this acquisition is an ideal strategic fit for AON.
On the other hand, JPMorgan’s association with well established AON will also provide the former with a competitive advantage and growth opportunities as both the divisions of the respective firms are working on the same business lines.
We believe AON is continually reviewing its portfolio of businesses, making acquisitions and bringing organizational changes, with a target of improving the company’s ability to better serve the clients and win new business overcoming the current volatility in the market.
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