Aon is buying NFP in a deal worth around $13.4bn (£10.6bn) funded by $7bn of cash and $6.4bn of Aon stock.
The transaction will see NFP remain as an independent but connected business, going to market as NFP, an Aon company.
NFP is a global intermediary firm with more than 7,700 employees around the world which includes health, protection, group risk, workplace wellbeing and employee benefits among its core services.
NFP CEO and chairman Doug Hammond will continue to lead the business, reporting to Eric Andersen, president of Aon.
Aon said the acquisition expands its presence in the large and fast-growing middle-market segment, with capabilities across risk, benefits, wealth and retirement plan advisory.
Citing its Aon United strategy and Business Services operating platform, it added that “the acquisition will enable the combined firms to efficiently deliver content and capabilities to the middle-market segment”.
The transaction, including regulatory approvals, is expected to close in mid-2024, however the firm said financial metrics had been calculated conservatively based on a 30 June 2025 closing date.
Aon and NFP will continue to operate independently until the closing date.
Aon said it expects the deal to generate $2.8bn in value after $400m in one-time transaction and integration costs, with breakeven projected for 2026 and positive value added in 2027.
It added the deal is another step in its ongoing Aon United strategy and follows the announced restructuring charge of around $900m, which is expected to drive around $350m in annual, run-rate savings by the end of 2026.
In 2021 Aon was left footing the bill of around $1.4bn after its proposed $30bn deal for WTW collapsed.
On the latest transaction, Aon CEO Greg Case said: “The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values.
“Doug and NFP have built an exceptional team, with a complementary one-firm mindset, and we expect to both learn from their entrepreneurial culture and share with them the depth and breadth of our capabilities to create more value for clients, colleagues and shareholders.”
NFP CEO Hammond added the acquisition was compelling for many reasons.
“This is an exciting milestone in NFP’s evolution that reflects the tremendous quality of the business we’ve built and the exceptional people who drive our success,” he said.
“Our clients will benefit from Aon’s global resources and distribution, while our people will have more opportunities to accelerate the growth of NFP.
“With aligned values and capabilities across different-sized market segments, we look forward to working with the Aon team to elevate performance and make the transaction successful for everyone involved.”