Altegrity buys risk consulting firm for $1.13bn cash

Marsh & McLennan Companies (MMC) has agreed to sell Kroll, its risk consulting arm, to Altegrity, a screening and security company run by former MMC and Kroll chief executive Michael Cherkasky. Altegrity is owned by private equity firm Providence Equity Partners.

The $1.13bn all-cash transaction is expected to close by late September, subject to regulatory approvals and other customary closing conditions.

MMC bought Kroll in 2004. Cherkasky was president and CEO of Kroll from 2001 to 2004. Cherkasky took over as MMC chief following the resignation of Jeffrey Greenberg amid concerns by US regulators about improper conduct at Marsh, the company’s insurance broking subsidiary. Former ACE chief Brian Duperreault replaced Cherkasky on January 30 2008.

“This transaction represents exciting new opportunities for Kroll,” said Ben Allen, CEO of Kroll, in a statement. “Over the past several years, we have taken significant steps to improve profitability and enhance collaboration across our business units. Kroll is now poised to continue its historical track record of growth, which will be accelerated by the combination with Providence and Altegrity.”

Duperreault added: “Over the past six years, Kroll has been a valued member of the MMC family. However we have determined our long-term strategy is to focus on the risk and insurance services and consulting businesses. Altegrity, with its complementary practice areas and expertise, will be a superb partner with Kroll to help drive the continued success of Kroll’s businesses and people.”