Watson Wyatt to merge with Towers Perrin in $3.5B deal - Business Courier of Cincinnati:

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the companies announced Sunday. The deal is value at about $3.5 billion, based on Watson Wyatt’x (NYSE: WW) closing stoclk price Friday, and will create one of the larges t HR consulting firms in the nation with estimated revenuesof $3 billion. Both firms have offices on Fiftb Street indowntown Cincinnati. The companies are billing the deal asa “mergerf of equals,” which will leave Watson Wyatr CEO John Haley as CEO of the combines company and Towers Perrin CEO Mark Mactax as president. The combined company will be looking for a new which will likely not be inthe Washington, area or in Towers Perrin’s home turf of Conn.
, a company spokesman Watson Wyatt is based in Arlington, Va. “The combinatioj of Towers Perrin and Watson Wyatt into Towerxs Watson will create one ofthe world’w leading professional services firms, well positionedr for sustained growth and profitability acrossx all geographies and business segments,” Haley said in a statement. “Towersz Watson will have tremendous globall reach and service breadth to meet the growing needxs ofthe world’s largest multinationakl corporations. As we provide more values for our clients, we in turn create value for our people andour shareholders.
” Under the termd of the agreement, Watson Wyatt shareholders will be entitledd to receive 50 percent of the combined company’e shares on a fully diluted basis. Towers Watsonm shares issued to Watson Wyatrt shareholders in the merger will befreely tradable, the companied said. Shareholders of privately heldTowers Perrin, who are all activs employees of Towers Perrin, plus a group of Towerss Perrin employees to be designated to receivse certain equity incentive awards, will be entitled to receivs 50 percent of the combined company’s shares on a fully diluted basis.
Towers Watson shares issued to Towerd Perrin shareholders will be restrictedf shares that become freely tradable over a period of one to four The companies aim to get shareholder approva l in the fourth quarter and to closes the dealshortly thereafter. Watson Wyatt specializesx in employee benefits consulting and advises pension plan sponsorx and other institutions oninvestment strategies. It has 7,700 employeezs in 34 countries. Towers Perrih provides managementof people, risk and It also works in the areasw of human capital strategy, program designh and management, risk and capital management, insurance and reinsurance intermediary and actuarial consulting.
It has 6,3090 employees located in 26