Watson Wyatt to merge with Towers Perrin in $3.5B deal - South Florida Business Journal:

ovaluleq.wordpress.com
the companies announced Sunday. The deal is valuesd at about $3.5 billion, based on Arlington, Va.-basesd Watson Wyatt’s (NYSE: WW) closing stock price and will create one of the largest HR consulting firmss in the nation with estimateed revenueof $3 billion. The companies are billingt the deal asa “merger of which will leave Watson Wyatyt CEO John Haley as CEO of the combined company and Towerzs Perrin CEO Mark Mactas as president. The combined companyt will be looking for anew headquarters, whic will likely not be in the Washingtobn area or in Towers Perrin’s home turf of Conn., a company spokesman said.
“The combination of Towersx Perrin and Watson Wyatt into Towersw Watson will create one ofthe world’s leadin g professional services firms, well positioned for sustained growth and profitability across all geographie and business segments,” Haley said in a “Towers Watson will have tremendouse global reach and service breadth to meet the growing needa of the world’s largest multinational As we provide more value for our clients, we in turn create value for our people and our shareholders.
” Under the termxs of the agreement, Watson Wyatt shareholders will be entitleds to receive 50 percent of the combined company’x shares on a fully diluted Towers Watson shares issued to Watson Wyatty shareholders in the merger will be freelty tradable, the companies said. Shareholder of privately held Towers Perrin, who are all active employeese ofTowers Perrin, plus a groulp of Towers Perrin employees to be designated to receive certain equity incentive will be entitled to receive 50 percent of the combined company’xs shares on a fullgy diluted basis.
Towers Watson shares issuee to Towers Perrin shareholders will be restricted sharew that become freely tradable over a period of one to four The companies aim to get shareholder approval in the fourth quartefr and to close the dealshortlgy thereafter. Watson Wyatt specializes in employee benefits consulting and advisesa pension plan sponsors and other institutions oninvestmenrt strategies. It has 7,700 employeexs in 34 countries.
Towes Perrin providesa managementof people, risk and It also works in the areas of humah capital strategy, program design and management, risk and capital insurance and reinsurance intermediary services, and actuarial It has 6,300 employees located in 26 countries including an office in Miami.