Yahoo Finance Marsh & McLennan (MMC) Unit Buys Digital HR Firm Leapgen
Marsh & McLennan Companies, Inc. MMC business Mercer recently acquired a Human Resources technology advisory firm, Leapgen. The move is expected to boost Mercer’s digital HR strategy capabilities.
The acquisition of St. Louis Park, MN-based Leapgen is expected to enrich Mercer’s solutions for Workforce and HR Transformation, improve technology decision-making, and enable providing better employee experience outcomes.
Organizations on average utilize more than 16 HR systems, according to Mercer, and its research predicts that among the U.S. companies raising HR spend, 63% are diverting more capital on HR tech this year. With the latest acquisition, the Marsh & McLennan arm is poised well to capture a significant portion of the growth.
The Leapgen buyout is expected to enable Mercer to provide better digital solutions that can improve return on investment and utilization. It can help the clients to deliver more value to their businesses. The terms of the deal are yet to be disclosed.
The deal highlights Marsh & McLennan and its businesses’ strategic inorganic growth strategy. The company has made numerous purchases within its different operating units that have enabled it to enter new geographical regions, expand within the existing ones, foray into new businesses and develop new segments. Constant buyouts poise it well for long-term growth.
Price Performance
Shares of Marsh & McLennan have jumped 4% in the past year compared with the industry’s 2.9% rise.
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Zacks Rank & Other Key Picks
Marsh & McLennan currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader finance space are Prudential Financial, Inc. PRU, Arthur J. Gallagher & Co. AJG and Ares Capital Corporation ARCC, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Prudential Financial’s 2023 earnings predicts 29% year-over-year growth. Over the past 30 days, PRU has witnessed six upward estimate revisions against one in the opposite direction.
The consensus mark for Arthur J. Gallagher’s 2023 earnings indicates a 13.2% year-over-year increase. Furthermore, the consensus estimate for AJG’s revenues in 2023 suggests 12.5% year-over-year growth.
The Zacks Consensus Estimate for Ares Capital’s 2023 earnings suggests 16.8% year-over-year growth. Also, the consensus mark for ARCC’s revenues in 2023 suggests 23% year-over-year growth.
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