US-based professional services firm Marsh & McLennan Companies (MMC) has agreed to acquire UK-based insurance and reinsurance broker Jardine Lloyd Thompson Group (JLT) in a deal worth around $5.6bn.
JLT was formed through the merger of Jardine Insurance Brokers and Lloyd Thompson Group in 1997. The business has operations in 40 countries.
As per the agreed terms of the transaction, JLT shareholders will be entitled to receive a cash payment of £19.15 per share.
As part of the deal, JLT group CEO Dominic Burke will become vice chairman at MMC. Burke will also join MMC’s executive committee.
The deal already secured the green light from the two companies’ boards. It is expected to be completed early next year, subject to shareholder and regulatory approvals.
The acquisition will be financed by existing cash reserves and debt financing proceeds. MMC expects the deal to lower costs by nearly $250m.
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.
“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company.”