Marsh & McLennan Companies (MMC) has agreed to acquire UK-based insurance and reinsurance broker Jardine Lloyd Thompson (JLT) Group for $5.6bn in an all-cash deal.
As per the acquisition terms, shareholders of JLT will receive £19.15 ($25.19) per share in cash from the US professional services firm.
The transaction is expected to help MMC to accelerate its strategy to become a leading firm in risk, strategy and people.
The US firm further said that JLT’s track record related to growth and geographic diversification will improve its own ability to accelerate growth and margin expansion across both geographies and products.
MMC president and CEO Dan Glaser said: “The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues and our shareholders.
“The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.”
JLT was formed in 1997 through the merger of Jardine Insurance Brokers and Lloyd Thompson Group. The insurance and reinsurance broker has operations across 40 countries with a strong presence in the UK and Australia.
JLT’s specialty business offers risk and insurance broking advice to various industries including energy, mining, healthcare, construction, aerospace and marine sectors among others.
The company’s reinsurance business – JLT Re offers risk analysis and risk transfer solutions to its insurer clients in all classes of treaty and facultative reinsurance.
The employee benefits team of JLT provides advice, brokering and other services in the fields of pensions consultancy and administration, employee benefits and wellness, life insurance, and also wealth management.
The transaction is expected to be completed in spring of 2019 subject to approval of JLT shareholders and receipt of antitrust and regulatory approvals.
Upon completion of the acquisition JLT Group CEO Dominic Burke will become vice chairman in MMC in addition to serving as a member of its executive committee.
Burke said: “MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”