Hewitt Associates to acquire US-based EnnisKnupp
GLOBAL - Hewitt Associates has agreed to acquire US-based investment consulting company EnnisKnupp & Associates for an undisclosed sum.
The deal, which comes just over a week after a merger between Aon Consulting and Hewitt was announced, means Hewitt will have approximately $3trn (€2.3trn) of assets under advice.
Russ Fradin, Hewitt's chief executive and chairman, said the move would offer clients an expanded set of services.
"EnnisKnupp's highly regarded advisory capabilities and impressive client portfolios are a perfect complement to Hewitt's well-respected actuarial business and extensive expertise in managing pension risk," he said.
"Our commitment to be a top-tier global investment consulting player and the potential to combine forces with EnnisKnupp were also real positives for Aon in our proposed transaction."
The integrated company will be led by current EnnisKnupp chief executive Steve Cummings and trade as Hewitt EnnisKnupp in the US.
It is currently unclear if the name will remain once the Aon Hewitt merger finalises.
Cummings said of the deal: "As institutional investing becomes increasingly complex, organisations are looking for an advisor that has global reach and solid experience across actuarial, pension risk, plan administration and investment consulting services."
John Rushen, head of investment consulting for Hewitt in the UK, said this was "the clearest possible signal of our continuing global commitment to investment consulting."
Under the new structure, Cummings will report to Mary Moreland, Hewitt's North American Retirement and Investment Consulting Leader.
Additionally, Cummings will manage the US leadership team composed of principals from both organisations, including Bradley Smith, current leader of Hewitt Investment Group, and Russ Ivinjack and Steve Voss, principals at EnnisKnupp.
Further, Ian Peart, currently head of Global Manager Research at Hewitt, will lead the Global Manager Research function for the combined organisation.
The deal is expected to close in September.