Watson Wyatt CEO John Haley will lead the new public company, to be known as Towers Watson & Co., while Towers Perrin CEO Mark Mactas will serve as president. The new company will be publicly listed. Currently, Watson Wyatt is public and Towers Perrin is owned by employees.
The merger would widen the consultants’ geographic reach and trim about $80 million in pretax costs; the combined firm’s annual revenues are expected to top $3 billion, according to the statement.
“This is an important transaction for our respective organizations that positions us well for a future of accelerated growth and higher levels of profitability.” Mactas said in the release. “Our service lines and geographic strengths are also highly complementary, which creates great opportunities for growth.”
The deal must be approved by regulators and each company’s shareholders, and could close by the end of the year.
On Friday, June 26, Watson Wyatt’s stock closed in New York at $41.18.