The acquisition of Risk Capital Advisors Pty Ltd (RCA) is expected to enhance Willis Towers Watson’s offering to clients in a growing M&A market, with RCA becoming a fully integrated part of the company’s FINEX global line of business, which provides clients with specialist advice and services.
Established in 2011, RCA provides insurance advisory and brokerage services, specialising in warranty & indemnity insurance and other specialist M&A products, such as tax (specifically indemnity) and environmental. Baker McKenzie acted for Willis Towers Watson in the acquisition, which is effective immediately.
Lead partner Andrea Kennedy said: “We are delighted to have worked with Willis Towers Watson in this transaction which will further enhance its offering both locally and globally, delivering market leading advice and insurance solutions to clients involved in M&A activity domestically and internationally.”
"With Baker McKenzie’s global expertise we were pleased to be able to assist with transactional and financial regulatory issues in Australia, Hong Kong and South Africa.”
The core team advising Willis Towers Watson were Andrea Kennedy, with special counsel Chris Taylor and general associate Darryl Jago in Melbourne and assistance from Baker McKenzie teams in Hong Kong and Johannesburg.
The acquisition of RCA comes after Nasdaq-listed Willis Towers Watson posted its second quarter earnings last week, which revealed 6 per cent of organic growth. The company recently acquired TRANZACT, a direct-to-consumer healthcare organisation that links individuals to US insurance carriers.
On a 31 July earnings call, CEO John Haley reported revenue for the second quarter of $2.0 billion, up 3 per cent as compared to the prior year second quarter and up 6 per cent on a constant currency and organic basis. Reported revenue included $51 million of negative currency movement.
"Once again in this quarter, we experienced growth on both an organic basis across all of our segments. Net income was $149 million, up 129 per cent for the second quarter, as compared to the $65 million of net income in the prior year second quarter," Mr Haley said.