Willis Group and Towers Watson are to merge to create a global advisory, broking and solutions firm. Incremental revenue growth through cost synergies is predicted at USD100 to USD125 million.
Based on the closing prices of Willis and Towers Watson common stock on June 29, 2015, the implied equity value of the transaction is approximately USD18 billion.
The combined company will be named Willis Towers Watson once the merger has been completed and 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.
The combined company will have approximately 39,000 employees in over 120 countries and pro forma revenue of roughly USD8.2 billion with adjusted underling EDITDA of USD1.7 billion for the 12 months ended December 31 2014.
John Haley, Chairman and Chief Executive Officer of Towers Watson, said, “This is a tremendous combination of two highly compatible companies with complementary strategic priorities, product and service offerings, and geographies.”
Dominic Casserley, Willis CEO, said, “These are two companies with world class brands and shared values.”