NEW YORK - Mercer (NASDAQ:MERC), a subsidiary of Marsh McLennan (NYSE: NYSE:MMC), announced today its agreement to acquire Cardano, a long-term savings and investment firm based in the UK and the Netherlands. The deal, which is anticipated to conclude by the end of 2024 pending regulatory approval, will see Cardano's roughly $66 billion in assets under management integrated into Mercer's wealth management services.
Cardano, established in 2000, specializes in fiduciary management, investment advisory services, and liability-driven investment solutions, catering to both defined benefit and defined contribution pension schemes. The company also runs NOW: Pensions, the third-largest master trust platform in the UK, serving over two million savers across 27,000 employers.
Mercer's Wealth President, Michael Dempsey, expressed enthusiasm about incorporating Cardano's high-quality team and its specialist investment capabilities. This acquisition aims to strengthen Mercer's position as a leading pension provider in the UK and the Netherlands, with aspirations to expand globally to serve a broader range of large asset owners.
Benoit Hudon, Mercer's UK President and CEO, highlighted the combined talents and capabilities of the two entities, which are poised to make Mercer the preferred pension provider and expand its services to other asset owners such as endowments, foundations, family offices, and insurers.
Michaël De Lathauwer, CEO of Cardano Group, echoed the sentiment of a shared culture focused on client outcomes. He anticipates that the merger will benefit clients and colleagues by providing access to Mercer's global resources, investment expertise, and strategic advice.
The transaction will result in approximately 550 Cardano employees from their offices in London, Nottingham, and Rotterdam joining Mercer. Both companies have expressed a commitment to delivering enhanced value for their institutional clients and supporting the financial futures of savers.
The information for this report is based on a press release statement.
In other recent news, Marsh McLennan has been active in expanding its operations through several acquisitions. The professional services firm has acquired Perkins Insurance Agencies, a Texas-based independent agency, reinforcing its presence in West Texas. Furthermore, Marsh McLennan has also acquired AC Risk Management, a New York-based commercial lines brokerage, to strengthen its presence in the Northeast, particularly in the construction insurance sector.
The company has also agreed to purchase Fisher Brown Bottrell Insurance, Inc. from Trustmark (NASDAQ:TRMK) National Bank for $315.9 million, a move aimed at enhancing its footprint in the Southeast. This acquisition is pending regulatory approval and is expected to conclude in the second quarter of 2024.
In the realm of analyst notes, Keefe, Bruyette & Woods raised their price target on Marsh & McLennan to $195 from the previous $188, maintaining an Underperform rating on the stock. This adjustment followed Marsh & McLennan's first-quarter earnings report. Additionally, RBC (TSX:RY) Capital Markets increased their price target to $210, citing the company's solid top-line momentum.
These recent developments are part of Marsh McLennan's ongoing efforts to grow and diversify its portfolio of services. The company plans to leverage these acquisitions to enhance its insurance and consulting services across various sectors and regions.
InvestingPro Insights
In light of Marsh McLennan's (NYSE: MMC) recent strategic acquisition of Cardano, the financial metrics provided by InvestingPro offer a snapshot into the company's current market standing. With a robust Market Cap of $103.45 billion, Marsh McLennan is showcasing its financial strength and capacity for such significant expansion moves. The company's P/E Ratio stands at 26.32, indicating investor confidence in its future earnings potential, despite trading at a high multiple relative to near-term earnings growth.
Marsh McLennan's solid Revenue Growth over the last twelve months, reported at 10.38%, demonstrates its ability to increase earnings, which is particularly relevant as it integrates Cardano's assets and capabilities. The firm's commitment to shareholder returns is also evident, having raised its dividend for 14 consecutive years and maintaining dividend payments for 54 consecutive years. This consistency underlines the company's financial health and its position as a prominent player in the Insurance industry, which could reassure investors looking for stable returns.
For those interested in further analysis and tips, InvestingPro provides an array of additional insights, including the company's low price volatility and its position near its 52-week high. With these metrics in mind, readers may consider exploring the full range of InvestingPro Tips available at https://www.investing.com/pro/MMC. Moreover, readers can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 11 valuable InvestingPro Tips that could guide investment decisions.
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