(Reuters) - British insurance broker Jardine Lloyd Thompson Group Plc (LSE:JLT) said it would acquire the reinsurance brokerage business of Towers Watson Co (NYS:TW) for $250 million in cash.
"Towers Watson offers us a very strong reinsurance platform in the key North American market, as well as bringing further strength in the London Market and a leading analytical capability," said Dominic Burke, JLT's group chief executive.
The company said the deal will be completed by the end of the year and is expected to add to earnings in the first full year after completion.
JLT said Towers Watson's reinsurance brokerage business would be merged with JLT's reinsurance business and would be branded for a transitional period as JLT Towers Re.
The combined business would generate revenue of $266 million and would be present in 17 countries, the company said.
JLT said Alastair Speare-Cole, CEO of JLT Re, would become chief executive of the merged operation, while Ross Howard, who currently heads Towers Watson's reinsurance brokerage business, will become executive chairman.
(This story is refiled to fix typo in headline)
(Reporting by Tasim Zahid in Bangalore; Editing by Supriya Kurane)