Aon, a management consulting firm, announced on Wednesday that it will acquire NFP, an insurance broker, for $13.4 billion. The acquisition will help Aon grow in the middle-market segment, which covers risk, benefits, wealth and retirement plan advisory.

The insurance sector is resilient in a volatile economy, as many policies are either provided by employers or required by the government. The deal, which involves funds from private equity firms Madison Dearborn Partners and HPS Investment Partners, is expected to be completed by mid-2024. Aon will pay $7 billion in cash and $6.4 billion in its own stock.

NFP is a broker that deals with property and casualty insurance, as well as benefits consulting, wealth management and retirement plan consulting. It has more than 7,700 employees and serves clients across the country.

Doug Hammond, the CEO of NFP, will remain in charge of the business and report to Eric Andersen, the president of Aon. NFP’s website shows that it had annual revenue of $738 million from its property and casualty segment and $1.11 billion from its benefits and life segment in 2022.

Insurance brokers act as intermediaries between insurers and customers, helping them find the best policy for their needs.

Aon said that the deal will result in more than $2.8 billion in pre-tax earnings, excluding about $400 million in one-time costs related to the transaction and integration. Aon’s third-quarter profit, which exceeded analysts’ expectations, was driven by its commercial risk solutions business.

UBS Investment Bank was the sole financial advisor to Aon on the deal. Citi provided deal financing advice.

Aon is a British-American professional services and management consulting firm that offers a range of risk, retirement and health solutions. It has approximately 50,000 employees across 120 countries and is listed on the New York Stock Exchange under AON.

Aon was founded in 1982 by Patrick Ryan, who merged his company with the Combined Insurance Company of America, which was started by W. Clement Stone in 1918. Aon is in the business of better decisions and aims to shape decisions for the benefit of all.

NFP is a leading insurance broker and consultant that provides employee benefits, property and casualty, retirement and individual private client solutions.

It has offices in the United States, Canada, Europe and Puerto Rico, and serves clients across the globe. NFP offers specialized expertise, innovative technologies and enduring relationships with highly rated insurers, vendors and financial institutions.

NFP is the 13th largest insurance broker in the U.S. and 7th largest benefits broker globally based on the 2022 Business Insurance rankings.

Aon divesting U.S. retirement business and Aon Retiree Health Exchange for a total of $1.4 billion