Aon said Friday it plans to sell its employee benefits outsourcing business to private equity firm Blackstone Group for up to $4.8 billion.

The transaction includes $4.3 billion at closing and the potential for up to an additional $500 million, based on future performance. “This transaction reinforces Aon’s position as the leading global professional services firm focused on risk, retirement and health,” said Greg Case, Aon’s president and CEO, in a statement Friday.

[Image: Bloomberg]
[Image: Bloomberg]

Case added that Aon’s HR BPO platform will thrive under Blackstone’s ownership, “providing clients the level of service and performance they have come to expect and allowing us to further reshape our portfolio to focus on stronger growth and higher return on invested capital opportunities consistent with our strategy.”

“We are excited to acquire a world-class leader of scale in health, retirement and HR services, providing critical human resources and benefits administration services to millions of employees and their families throughout the United States and Canada,” said Peter Wallace, a senior managing director at Blackstone. “We look forward to working with the excellent management team to continue to invest in and grow the company.”

Aon declined to give further details until the deal closes. It is expected to close by the end of the second quarter of 2017.

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