As previously reported, global insurance and reinsurance brokerage group WTW has completed the acquisition of San Francisco-based Newfront, a top 40 U.S. broker that combines deep expertise with cutting-edge technology, with upfront and contingent consideration payments of $1.3 billion.
The acquisition expands WTW’s capabilities in the U.S. mid-market and strengthens its position in “high-growth” industries such as technology, fintech and life sciences.
Newfront has built a differentiated brokerage platform powered by a growing producer base, proprietary client-facing technology, and advanced automation and agent artificial intelligence.
The Newfront team has joined WTW, including co-founder and Chief Executive Officer (CEO) Spike Lipkin, who will focus on integration, customer development, talent acquisition and technology.
In addition, Newfront’s primary business units Commercial Insurance and Total Rewards merged with WTW’s Risk & Brokerage (R&B) and Health, Wealth & Careers (HWC) divisions, respectively.
Carl Hess, CEO of WTW, commented: “We are pleased to welcome Newfront to the WTW team. Combining Newfront’s cutting-edge technology-enabled brokerage model and expertise in high-growth industries with WTW’s global footprint, specialized strategies and proven analytics and brokerage platform will enhance our ability to provide innovative, efficient solutions to our clients. This milestone marks an important step in the execution of our strategy as we enhance our competitive advantage and create long-term value for all our stakeholders.”
JP Morgan Securities LLC is serving as exclusive financial advisor to WTW, and Weil, Gotshal & Manges LLP is serving as legal counsel.
Concurrently, Perella Weinberg serves as exclusive financial advisor to Newfront, and Reed Smith LLP serves as legal advisor.
