Towers Perrin and Watson Wyatt complete merger, now Towers Watson

Written by Ellina Badri
Monday, 04 January 2010 23:08

KUALA LUMPUR: Towers Watson & Co has completed the merger of Towers Perrin and Watson Wyatt to form Towers Watson, a global professional services company listed on the New York Stock Exchange and the Nasdaq.

In a statement today, Towers Watson said Watson Wyatt chief executive officer John Haley would serve as Towers Perrin chairman and CEO, while Towers Perrin CEO Mark Mactas would become deputy chairman, president and chief operating officer.

The deal had been valued at US$4 billion (RM13.68 billion).

"We are delighted to finalise the merger and look forward to bringing a broader portfolio of services to our clients," Haley said.

"When it comes to managing costs, risks and people, the world is growing more complex everyday. Towers Watson is uniquely positioned to help our clients gain the perspective necessary to take the right actions to drive business results," he added.

Meanwhile, Mactas said with the combined experience, breadth and depth of skills, Towers Watson would be able to provide greater insight as it worked with its clients and greater opportunities for its people and shareholders.

As a result of the merger, Towers Watson was expected to issue 46.9 million shares of Class A common stock and 29.5 million shares of Class B common stock, which would be subject to transfer restrictions and would generally convert into freely-tradable shares of Class A common stock on a one-for-one basis over the next four years.

Towers Watson would also pay US$200 million in cash and issue one-year promissory notes in an aggregated principal amount of US$200 million to certain former Towers Perrin shareholders who had voluntarily elected to terminate their employment with the company.

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Towers Perrin and Watson Wyatt complete merger, now Towers Watson