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Chicago-based Aon Corp. will acquire London-based specialist reinsurer Benfield Group Ltd. for an enterprise value of around £935 million ($1.75 billion), the companies said Aug. 22.
Under the definitive agreement, which was approved by boards of both the companies, Aon will acquire Benfield for £3.50 ($6.54) per share in cash and assume £91 million ($170.0 million) of Benfield net debt. The acquisition consideration represents a 29% premium to Benfield's closing stock price on Aug. 21.
Aon will integrate the Benfield business with its unit Aon Re Global Inc. and operate the division globally under the new Aon Benfield Re brand. The company intends to fund the transaction, which is not subject to a financing contingency,...