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WTW Buys Newfront To Fuse AI With Global Insurance Muscle

Benzinga · 1d ago

Willis Towers Watson Public Ltd. (NASDAQ:WTW), branded as WTW, is expanding its presence in tech-enabled insurance and workplace benefits, announcing two acquisitions that aim to enhance its middle-market reach and modernize client service.

The firm announced that it has struck a deal to acquire Newfront, a San Francisco-based insurance broker, to strengthen its position in U.S. middle-market accounts and high-growth specialties, including technology, fintech, and life sciences.

The deal totals up to $1.3 billion, with $1.05 billion upfront, about $900 million in cash and $150 million in equity.

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Up to $250 million in additional equity-based payments are tied to performance, with a further $150 million possible if growth exceeds targets. WTW will also provide $100 million in equity retention incentives through 2031.

WTW expects $35 million in annual cost synergies by 2028, while incurring $25 million in transaction costs, $100 million in integration costs, and $30 million in one-time non-cash charges. The deal is 10 cents EPS-dilutive in 2026 and accretive in 2027.

The deal adds innovative, agentic AI-driven technology that builds on WTW’s recent data and analytics investments and speeds up its technology strategy.

U.K. Expansion With Cushon

In a separate agreement, WTW stated that its U.K. business will acquire Cushon from NatWest Group, thereby adding scale to the U.K. defined-contribution master trust market and expanding its workplace pensions and savings offerings.

WTW said Cushon brings nearly 4 billion pounds in assets under management and about 730,000 members, alongside WTW’s LifeSight master trust, which the company said holds more than 26 billion pounds in assets and serves about 430,000 members.

Julie Gebauer, WTW’s president of Health, Wealth & Career, said the deal expands WTW’s ability to serve both large employers and the midmarket in the fast-growing master trust space.

WTW Price Action: Willis Towers Watson shares were up 0.13% at $322.64 at the time of publication on Wednesday, according to Benzinga Pro data.

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