Aon Hewitt created by merger

For just under $ 5 billion, Aon Corporation is purchasing and merging with HR outsourcing and consulting firm Hewitt Associates. The combined Aon Hewitt Division will provide many of the services Hewitt did before the merger. The companies estimate that this merger will eventually save the companies $ 355 million each year.

Article resource – Aon Corporation purchases Hewitt Associates, creates Aon Hewitt by Personal Money Store

Creating the Aon Hewitt division with a purchase

Announced this morning and expected to close in November, the Aon purchase of Hewitt Associates will cost $ 4.9 billion. Hewitt is going to be getting over 40 percent more per share than they are currently trading with. Hewitt stockholders will be paid $ 25.61 and .63 stocks in Aon. Aon Hewitt will keep the same CEO while combining the back-office operations with Aon offices. Hewitt Associates stock rose while Aon stock fell on this news. Illinois will play host to the new company. No word yet on how many employees of Aon or Hewitt may lose their jobs during this combination of business operations.

Aon Corporation’s business practices

Aon Corporation is a service that works in “human capital consulting”. The company offers advice and insurance brokering services to clients. The company is traded on the New York Stock Exchange and is classified as a financial business. Just one year ago, in August of 2009, Aon Corporation shed three separate insurance companies from its business model.

How Hewitt Associates operates

Hewitt Associates is a business that focuses on human resource outsourcing. Hewitt offers HR management, benefits, and other administrative services. A small portion of Hewitt’s business also includes consulting. Traded on the New York Stock Exchange, Hewitt is a “commercial service and supply” business. There has been some major restructuring within Hewitt Associates as well. In May of 2010, HRAdvance Inc. was purchased by Hewitt, at about the same time Latin American business operations were spun off into an entirely separate company.