Blackstone Picks Up Recordkeeper

One of the nation’s largest recordkeepers has a new parent.

Blackstone has announced that private equity funds affiliated with the firm have entered into a definitive agreement to acquire Aon plc’s “technology-enabled benefits and human resources platform,” currently part of Aon Hewitt, for cash consideration of up to $4.8 billion, including $4.3 billion at closing and additional consideration of up to $500 million based on future performance.

Pensions & Investments reported that the Aon Hewitt’s U.S. DC recordkeeping business formed part of the deal, citing a firm spokesperson, although Aon Hewitt Investment Consulting is not part of the deal.

Aon Hewitt was the fifth largest DC plan recordkeeper, with $377.15 billion in assets as of Sept. 30, 2015, according to Pensions & Investments’ most recent survey of recordkeepers.

The business is the largest benefits administration platform in the United States and a leading service provider for cloud-based HR management systems. It serves approximately 15% of the U.S. working population across more than 1,400 companies, according to a press release. Aon and the new, stand-alone company will continue to work together on behalf of shared clients and prospects.

The acquisition is set to be completed by the end of the second quarter. Aon’s Chris Michalak will be CEO of the new, standalone business.

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