Altegrity Inc. will acquire Kroll Inc. from Marsh & McLennan Companies, Inc. (MMC) in an all-cash transaction valued at US$1.13 billion (EUR 942 million), according to a joint announcement recently released. The deal is expected to be finalised by late September and it is still subject to customary closing conditions and regulatory approvals.
MMC is a company specialised in providing global professional services, and Altegrity is an international screening and security solutions company owned by Providence Equity Partners, a specialised global private equity firm with investments in media, entertainment, communications and information technology companies. Kroll is a leading global risk consulting firm.
Existing clients of Altegrity will now look forward to an enhanced portfolio of industry-leading services with which to identify and manage risk, which in turn will complement the current offerings of information and insight, helping customers to make more informed decisions. The synergy resulting from the combined resources of Altegrity and Kroll has the development potential to create new and innovative solutions for government and commercial clients across a global platform.
For Kroll, this deal will open opportunities for growth, besides continuing on the path of improved profitability and closer collaboration between their business units, after being part of MMC during the past six years.
The combined workforce of Altegrity after the acquisition of Kroll will reach approximately 11,000 employees across 30 countries.
MMC is a global professional services firm providing advice and solutions in the areas of risk, strategy and human capital. It is the parent company of a number of the world’s leading risk experts and speciality consultants, including Marsh, the insurance broker and risk advisor; Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm. With approximately 52,000 employees worldwide and annual revenue exceeding $10 billion, MMC provides analysis, advice and transactional capabilities to clients in more than 100 countries.
Kroll Inc., the world’s leading risk consulting company, provides a broad range of investigative, intelligence, financial, security and technology services to help clients reduce risks, solve problems and capitalise on opportunities. Head-quartered in New York with offices in more than 55 cities in over 27 countries, Kroll has a multidisciplinary team of more than 3,000 employees and serves a global clientele of law firms, financial institutions, corporations, non-profit institutions, government agencies, and individuals.
Altegrity Inc., a global screening and security solutions company head-quartered in Falls Church, Va., USA has nearly 8,000 employees in locations around the world. Altegrity, which is the holding company for USIS, HireRight, Explore Information Services, and Altegrity Risk International, partners with its government and commercial clients to help them Make Decisions Smarter(R) by uncovering, reviewing, analysing, and delivering information. Altegrity is the largest commercial provider of background investigations for the government; a global commercial employment background and drug screening supplier to more than 25 percent of the Fortune 500; one of the principal providers of data services to the insurance industry; and a leading provider of high quality due diligence, investigative, analytic, consulting, intelligence, and security solutions to organizations and multinational corporations around the world.
Providence Equity Partners is the leading global private equity firm specializing in equity investments in media, entertainment, communications and information services companies around the world. The principals of Providence manage funds with over $22 billion in equity commitments and have invested in more than 100 companies operating in over 20 countries since the firm’s inception in 1989. Providence is headquartered in Providence, RI (USA) and has offices in New York, London, Los Angeles, Hong Kong and New Delhi.
Marsh & McLennan Co. Inc., one of the world’s largest insurance brokerages and risk management companies, has announced the completion of a deal which sees the company acquire HSBC Insurance Brokers Ltd (HIBL), a wholly owned subsidiary of HSBC Bank PLC.
Marsh, which announced its intentions in December 2009, is estimated to have paid somewhere in the region of US$ 205 million for HSBC’s brokerage unit. The purchase of HIBL will see Marsh taking possession of approximately 30 new international offices, located throughout Europe, Asia, and the Middle East, in addition to the retention of more than 1,400 employees across those locations; approximately 1000 of these employees are based in the United Kingdom.
While HIBL is only the ninth largest insurance broker in the UK, it is able to diversify the range of products which Marsh is currently offering in the country; which is Marsh’s second largest market behind the USA. The purchase means that Marsh will now be able to offer HIBL’s range of specialty insurance products, including education, marine and specie policies.
The purchase of HIBL now makes Marsh one of the largest international insurance brokers in Hong Kong, often seen as a cornerstone of the Asian insurance market.
In addition to the purchase of HSBC’s insurance broking arm, Marsh also entered into a preferred strategic partnership agreement with the bank. This agreement will see Marsh offering insurance and risk management services to HSBC’s clients.
Dan Glaser, CEO of Marsh Inc, said of the deal “not only does the bank become our client for both insurance and reinsurance, but we are working together in a joint effort to provide more broking services to HSBC’s clients, both in private and commercial banking.”
Final details, and closure of the deal, are expected during the second quarter of 2010 in Abu Dhabi and Saudi Arabia.
Marsh & McLennan Co. Inc (MMN) is one of the largest insurance brokerages and risk management companies in the world. Operating in over 100 companies worldwide they are able to help clients identify risks and take actions to prevent negative outcomes