Aon is selling its human resources administration business and its human resources operating platform to investment firm Blackstone for U.S.$4.3 billion at closing and up to an additional US$500 million, depending on future performance.

In a news release, Aon said it expects after-tax proceeds of the sale of the business, which targets larger clients, will amount to US$3 billion.

Aon says it will continue to deliver pension and benefits administration to mid-market Canadian clients.

The sale is expected to close by June 2017.

Aon plans to use part of its proceeds from the sale to repurchase more shares. Currently, the company has allocated US$7.7 billion for share repurchasing.

Read: HR is going from in-house to out-of-house

Copyright © 2019 Transcontinental Media G.P. Originally published on benefitscanada.com

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