Towers Perrin Forster & Crosby and Watson Wyatt Worldwide unveiled a plan to merge in an all-stock deal valued at about $3.5 billion. The name of the combined human resources firm will be Towers Watson & Co.
Under terms of the deal, Watson Wyatt shareholders will receive 50 percent of the shares in the combined company. Towers Perrin shareholders and some designated employees will be entitled to the other 50 percent of the shares.
Watson Wyatt CEO John Haley will be chairman and CEO of the new company. Mark Mactas, Towers Perrin's CEO, will serve as president and chief operating officer of the new Towers Watson & Co.
"The combination of Towers Perrin and Watson Wyatt into Towers Watson will create one of the world's leading professional services firms, well positioned for sustained growth and profitability across all geographies and business segments," Haley says. "The combination will further strengthen our core service lines while offering our clients an enhanced portfolio of proven offerings across a range of financial, risk and people management areas."
Towers Watson will have tremendous global reach and service breadth to meet the growing needs of the world's largest multinational corporations, he says.
Meanwhile, Tower Perrin's Mactas says it was an "important transaction for our respective organizations that positions us well for a future of accelerated growth and higher levels of profitability. The fit between our firms is excellent, starting with a deep commitment to client service and shared values of integrity, professionalism and respect."
The combined entity will have about 14,000 employees and is estimated to have annual revenues around $3 billion, although the new firm could end up with significantly different figures.
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