Advisory and brokerage giant WTW announced Wednesday it has agreed to acquire Newfront, the tech-forward insurance broker, in a deal valued at up to $1.3 billion, aimed at strengthening WTW’s middle-market footprint and expanding its presence in technology, fintech, and life sciences. The transaction is advised by Weil Gotshal & Manges LLP.
Under the terms, WTW will pay an upfront $1.05 billion, including $900 million in cash and $150 million in equity to Newfront employee-shareholders. An additional $250 million could be earned if Newfront meets specified performance targets, the companies said.
Integration of Business Segments and Technology
The deal merges Newfront’s business insurance and total rewards units with WTW’s risk and broking segment and health, wealth and career segment, respectively. The combination is designed to create an integrated, end-to-end technology platform serving clients more efficiently.
“Newfront has built a broking business powered by exceptional technology that offers a smart, fast, and efficient client experience,” said WTW CEO Carl Hess. “This combination strengthens our U.S. middle-market presence, accelerates our technology and specialty strategies, and will drive growth while enhancing operational efficiency for our clients.”
Newfront has developed a client-facing platform with AI-driven placement capabilities, allowing agents to engage clients more productively. When integrated with WTW’s digital trading platform, risk models, data analytics, and submission tools, the companies said it will create a seamless digital ecosystem for clients of all sizes.
