Hatboro-Based Aon Affinity Approves $70 Million Merger

Aon Affinity, the consumer, association and group program subsidiary of Aon Risk Solutions, announced Monday it has entered into a definitive merger agreement to acquire Access Plans, a marketing company specializing in turnkey, private-label membership benefit plans that provide discount products and services, protection benefits and retail services to more than 1 million customers in the United States and Canada.

According to a press release issued by Aon, the boards of directors of both companies have approved the agreement under which Access Plans will merge with an Aon Affinity subsidiary. The holders of a majority of the outstanding shares of common stock of Access Plans executed written consents approving and adopting the merger agreement and the merger shortly after the execution of the definitive merger agreement by the parties. 

Aon Affinity will acquire all of the outstanding shares of and options to acquire Access Plans common stock for an aggregate consideration of approximately $70.1 million in cash. 

Access Plans will operate as a business unit of Aon Affinity, which is based in Hatboro, on East County Line Road. Aon's acquisition announcement follows several rounds of layoffs at Aon's Hatboro office in the spring of 2009, according to an individual employed at the company during that time. 

The transaction is expected to close during the second quarter of 2012 and is subject to various closing conditions.

According to the release, Access Plans is the nation's largest membership plan provider in the specialty rent-to-own market space. The company bundles a broad range of non-insurance products and services - from discounted medical, dental, vision and pharmacy services to groceries, restaurant meals and hotel rooms. These plans are sold to consumers primarily through more than 300 retail and rent-to-own businesses. Access Plans recently divested its insurance marketing division. As a part of Aon Affinity, Access Plans is expected to add approximately $18 million of revenue to Aon's financials.

Aon Affinity specializes in providing custom insurance and risk management programs to more than 200 major professional associations and corporations, serving 16.5 million individual customers.

"At Access Plans, we provide opportunities for people to save money on the things they spend money on every day and offer access to products and services they might otherwise be unable to afford," said Danny Wright, chairman and chief executive officer of Access Plans in the release. "This sale represents a natural step for us. Becoming a part of the leading risk advisory firm translates into a positive outcome for our shareholders, greater options and value for our clients and increased opportunities for our colleagues."

Aon Affinity CEO Kevin Garvin said Access Plans complements his company's business model. 

"We share a commitment to creating revenue for our business partners, offering differentiated products and services to the public and delivering unmatched value to our clients," Garvin said in the release.