Aon to Acquire ASA (Actuarial Sciences Associates, Inc.) Enhancing Employee Benefits Consulting Capabilities to Fortune 500 Clients
CHICAGO, August 25, 2000 – Aon today announced that its worldwide employee benefits and human resources consulting organization, Aon Consulting, Inc., has entered into a definitive agreement to acquire Actuarial Sciences Associates Inc. (ASA). ASA is a premier employee benefits and compensation consulting firm headquartered in Somerset, NJ. The transaction, which is based on an exchange of Aon common shares for ASA shares and is subject to regulatory approvals, is expected to close within the next 60 days. The acquisition is not expected to have an effect on Aon's earnings per share in 2001.
ASA – an independent firm which was initially established as a wholly-owned subsidiary of AT&T in 1985 – currently has over 600 employees in 11 locations in the United States and Canada. The company was founded by its current CEO, Michael J. Gulotta. Its revenue for 1999 was $118 million.
"This acquisition strengthens Aon's fast-growing consulting business at a time when our largest corporate clients are seeking fully-integrated solutions to address their employees' changing needs," stated Patrick G. Ryan, chairman and chief executive officer, Aon Corporation.
ASA has long-term relationships with prominent clients to whom it provides retirement plan, health and welfare, compensation and a wide range of other employee benefit consulting services. Additionally, ASA's benefits outsourcing business includes the delivery of fully integrated services such as employee call centers, administration of qualified and nonqualified benefit plans, plus web-based benefits information and administration solutions. ASA also provides organizational communications consulting related to human resources and strategic marketing as well as compensation consulting services. Consulting is also provided by ASA in corporate restructurings, independent fiduciary counseling and product design and outsourcing of administration for the insurance industry.
Donald C. Ingram, chairman and chief executive officer, Aon Consulting Worldwide, stated: "ASA's client roster offers a significant Fortune 500 presence in areas that are strategically important to Aon Consulting, such as retirement plan consulting, benefits outsourcing, communications and insurance company consulting. ASA's expertise in these areas will allow us to provide enhanced consulting capabilities to larger clients."
Michael J. Gulotta will assume the role of Chairman, North America Employee Benefits and Compensation Consulting for Aon Consulting. Gulotta is serving in his third year of a three-year term on the ERISA Advisory Council of the Department of Labor, a group he was named chairman of earlier this year.
"The great business fit between the two companies is enhanced by the cultural fit resulting from the entrepreneurial spirit that both companies possess," said Gulotta. "We can freely draw on our combined ‘what it takes' attitude to assist clients in developing the most creative, cost-effective, workable solutions in a host of benefits and related areas. All of us at ASA look forward to joining the Aon family."
Deutsche Banc Alex. Brown advised ASA on the transaction.
Specific enhancements to Aon Consulting's capabilities as a result of this combination include the following:
Pension & Retirement Consulting
Aon Consulting and ASA will combine to be one of the world's largest pension actuarial consultancies. The combined practices will be responsive to an ever-growing demand for creative retirement plan design solutions to meet the needs of an increasingly mobile and global workforce.
Outsourcing
This combination will create one of the largest outsourcing consultancies in the world. Aon Consulting will join the small handful of organizations that can serve the large employer marketplace for outsourcing needs ranging from recruitment, assessment and selection to retirement and health and welfare plan administration. Factoring in a strong global retirement outsourcing presence, Aon will be able to deliver a truly global service, with outsourcing capabilities in the US, UK and Canada.
Compensation and Executive Benefits
The combination of Aon Consulting and ASA will enhance an already major consultancy in the compensation consulting and executive benefits arena. Aon Consulting provides expertise in the areas of salary management, executive compensation, salary surveys and e-business, with additional specialization in strategic rewards, including programs for executives, professionals and front line employees.
Communications
ASA's and Aon's award-winning communication consultants, including writers, graphic designers and multimedia specialists will combine to provide enhanced capabilities to deliver custom-designed and highly sophisticated communication solutions.
About Aon
Aon Consulting Worldwide is among the world's top global human resource consulting firms, with reported 1999 revenues in all of its consulting operations of $656 million and 5,700 employees in over 130 offices worldwide.
Aon Corporation is a holding company that comprises a family of insurance brokerage, consulting and underwriting subsidiaries. Aon's common stock (Symbol: AOC) is listed on the Chicago, Frankfurt, London and New York stock exchanges. Visit www.aon.com for more information.