Marsh & McLennan Agency LLC ("MMA"), a wing of
Marsh & McLennan Companies, Inc.
), announced the acquisition of North Carolina-based
employee-benefit oriented services provider Progressive Benefit
Solutions ("PBS"). The financials and other terms of the deal
Following the deal, PBS will function as a part of Rutherfoord,
a wing of MMA to extend the capabilities and resources of employee
benefits in Raleigh. Following the closure of the deal, PBS will
continue to operate from its existing office located in
With the acquisition of PBS, Marsh & Mclennan is expected to
expand its customer base, which will be accretive to its top line
in the upcoming quarters. The company has always been on the look
out for strategic and profitable acquisitions. The recent
acquisition marks its fourth acquisition over the last six
The recent acquisition is close on the heels of Marsh's launch
of CloudProtect, an innovative solution to mitigate the risk
associated with cloud computing. The recent initiatives undertaken
by Marsh & McLennan to grow organically as well as
inorganically are reflected in the company's increasing stock
price. A stable rating affirmation by Fitch Ratings further adds to
The company should be wary of the fact that a proactive stance
on the acquisition front has also been adopted by its competitors
). Aon Affinity, an operational division of Aon Risk Solutions,
recently completed the acquisition of Access Plans for a cash
payment of $70.1 million. This merger is slated to increase the
company's customer-base for protection benefits and retail services
by over a million in the United States and Canada.
Marsh & McLennan currently retains a quantitative Zacks #3
Rank, which translates into a short-term Hold rating. We also
maintain a long term Neutral recommendation on the stock.
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