WTW expands with acquisition of credit risk firm GCC

NEW YORK - WTW (NASDAQ: WTW), a global advisory, broking, and solutions company with a market capitalization of $33.6 billion and annual revenue of $9.9 billion, has announced the acquisition of Global Commercial Credit, LLC (GCC), a move set to enhance its North American presence in the credit and political risk insurance market. According to InvestingPro data, WTW maintains a strong financial health score and has shown consistent revenue growth of 4.7% over the last twelve months. The transaction, which also includes the purchase of ProfitGuard, a credit risk management service, aims to bolster WTW’s specialized business offerings and drive growth in strategic industry sectors.

GCC, established in 1995 in Michigan, is recognized for its expertise in developing custom-tailored credit risk management solutions, including trade credit and political risk insurance, as well as credit information services. The integration of GCC is expected to diversify Willis’s client base and strengthen its sales capabilities across the United States.

Scott Burnett, Head of Corporate Mergers & Acquisitions for WTW’s Risk & Broking business, highlighted the acquisition’s alignment with WTW’s strategy to optimize its portfolio and expand into high-growth broking businesses. He noted that GCC’s addition would significantly enhance WTW’s scale and growth potential, particularly in North America.

Evan Freely, WTW’s Global Head of Financial Solutions, expressed enthusiasm for the acquisition, emphasizing GCC’s specialized business strategy and market penetration as key factors that align with WTW’s own business plan. The deal is anticipated to accelerate WTW’s growth and expand its footprint in strategic industry sectors.

Victor Sandy, President and CEO of GCC, commented on the merger, emphasizing the importance of effective credit risk management and the opportunity to deliver integrated solutions to a broader market through WTW’s platform.

The acquisition is part of WTW’s broader effort to provide data-driven, insight-led solutions in people, risk, and capital management. The company serves clients in 140 countries and markets, aiming to uncover opportunities for sustainable success and provide perspectives that drive performance. WTW has demonstrated its commitment to shareholder value by maintaining dividend payments for 23 consecutive years, with a current dividend yield of 1.09%. InvestingPro analysis reveals 8+ additional insights about WTW’s financial performance and market position, available to subscribers.

This strategic move positions Willis as one of North America’s leading trade credit insurance specialists and underscores WTW’s commitment to expanding its capabilities and reach within the insurance value chain. Trading near its 52-week high of $344.14, analysts maintain a positive outlook with price targets ranging from $302 to $408. For comprehensive analysis and detailed insights about WTW’s valuation and growth prospects, access the full Pro Research Report available on InvestingPro. The information in this article is based on a press release statement and market data.

In other recent news, Willis Lease Finance Corporation reported record fourth-quarter earnings, with revenue increasing 33.7% year-over-year to $152.8 million. The company’s diluted earnings per share rose to $2.81 from $1.53 in the same period last year. For the full year 2024, Willis Lease Finance achieved record total revenues of $569.2 million and pre-tax income of $152.6 million. Meanwhile, Willis Towers Watson has made strategic leadership changes to bolster its data and digital strategy. Kate Harb has been appointed as Global Data Strategy Leader, while Dermot Sargent has taken on the role of Global Digital Platforms Leader. UBS analyst Brian Meredith recently upgraded Willis Towers Watson’s stock rating from Neutral to Buy, increasing the price target to $395, citing expectations of improved operating and free cash flow margins. Additionally, Willis Towers Watson has appointed Massimo Cavadini as the Head of Product, Pricing, Claims, and Underwriting for Continental Europe, aiming to enhance its insurance analytics capabilities. These developments reflect Willis Towers Watson’s ongoing commitment to leveraging data-driven insights and digital solutions.

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