Aon to sell benefits outsourcing to Blackstone for $4.3 billion

Markets Reuters

FILE PHOTO - The ticker and trading information for Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) April 4, 2016. REUTERS/Brendan McDermid/File Photo (Copyright Reuters 2017)

Insurance broker Aon PLC said on Friday it agreed to sell its benefits administration and HR BPO platform to Blackstone Group LP for $4.3 billion in cash.

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Aon said it expected the deal to improve its return on invested capital and add to adjusted earnings per share in 2018.

The company also said it expects to allocate part of the proceeds from this transaction to increase its share repurchases.

The repurchase program has been increased by $5 billion, bringing the total amount currently authorized for repurchases to about $7.7 billion as of Feb. 10, Aon added.

(Reporting by Nikhil Subba in Bengaluru; Editing by Shounak Dasgupta)