BY Richard Summerfield
WTW, a leading global advisory, broking and solutions company, has agreed to acquire Newfront, a top-40 US broker combining deep specialty expertise and cutting-edge technology, in a deal worth up to $1.3bn.
The deal will see WTW pay upfront and contingent consideration payments totalling $1.3bn. The upfront portion of $1.05bn is comprised of approximately $900m in cash and $150m in equity to be paid to Newfront employee-shareholders.
The contingent consideration of up to $250m is payable primarily in equity, subject to Newfront’s achievement of specified performance targets. Additionally, up to an incremental $150m payable primarily in equity would become payable if Newfront achieves above-target revenue growth.
The transaction is expected to close during the first quarter of 2026, subject to receipt of certain regulatory approvals and other customary closing conditions.
According to a statement announcing the deal, WTW expects to realise run-rate cost synergies of approximately $35m by the end of 2028, driven primarily by technology-driven efficiencies and overhead optimisation across both Newfront and WTW. WTW expects to incur transaction expenses of $25m and cash integration costs of approximately $100m, including technology integration, systems alignment and employee-related costs, as well as approximately $30m of one-time non-cash expenses.
“We’re delighted to welcome Newfront to the WTW team as we take an important step forward in executing on our strategy through a transaction that will drive value creation for our clients, colleagues and shareholders,” said Carl Hess, chief executive of WTW. “The Newfront team has built a broking business, powered by exceptional technology that offers a smart, fast and efficient client experience and complements our own technology investments. This combination strengthens our presence in the U.S. middle market, accelerates our technology and specialty strategies, and enables the delivery of an integrated, end-to-end technology platform that will drive growth, enhance operational efficiency and better serve our clients.”
“Newfront is excited to join WTW and combine our technology-native approach to insurance broking with WTW’s global presence and established trading, analytics and broking platforms,” said Spike Lipkin, co-founder and chief executive of Newfront. “WTW’s culture and strategic focus on specialization and technology are a strong fit for Newfront, and we will work together to bring an innovative and efficient broking experience to our combined global client base. We will continue to serve our clients with the speed and intelligence they expect and will offer new capabilities enabled by WTW’s comprehensive portfolio of global solutions and products.”
News: WTW to buy brokerage firm Newfront in up to $1.3 billion deal