11:04 AM EDT, 09/30/2024 (MT Newswires) -- Marsh & McLennan ( MMC ) announced an agreement on Monday to buy McGriff Insurance Services for $7.75 billion in a move that is expected to enhance the former's insurance offerings.

The professional services and insurance company will fund the cash consideration with a combination of cash and proceeds from debt financing. Marsh & McLennan ( MMC ) will assume a deferred tax asset valued at about $500 million.

McGriff, an affiliate of TIH, provides insurance broking and risk management services in the US. It had $1.3 billion in revenue for the trailing 12 months ended June 30.

"The transaction will enhance Marsh McLennan Agency's capabilities across commercial property and casualty, employee benefits, management liability and personal lines," according to a statement.

The transaction is expected to close by the end of this year, pending regulatory approvals. At that time, McGriff's more than 3,500 employees, including Chief Executive Read Davis, will join Marsh McLennan Agency.

In July, Marsh & McLennan ( MMC ) reported a 6% year-over-year increase in second-quarter revenue to $6.22 billion that came in shy of the $6.31 billion average analyst estimate on Capital IQ. Revenue at Marsh, one of its operating segments, advanced 8% from the same period of 2023.

"Marsh McLennan's ( MMC ) global resources and insights will enable us to deliver even greater value to those we serve while creating exciting opportunities for the growth and development of our team," Davis said.

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