WTW to Buy Newfront in $1.3b Deal That Piper Calls Not Cheap (1)

(Adds share move in the first sentence, analyst comments starting in the first bullet.)

WTW inches 1.7% lower after the insurance services company signed an agreement to buy specialty broker Newfront for $1.3 billion in upfront and contingent consideration payments.

• “The deal is not cheap in our opinion, but is fairly consistent with what we have seen recently by the large brokers,” Piper analyst Paul Newsome writes
  • “We think it is important that this deal likely means WTW won’t do some huge transformative deal and reinforces thatdeals will be largely bolt-ons (even the big ones),” he adds
• Truist analyst Mark ...