Willis Towers Watson, the world’s third-largest insurance brokerage, on Friday said it has agreed to sell its reinsurance business, Willis Re, to Arthur J. Gallagher & Co. in a deal valued at $3.25 billion, Benefits Pro reported. The news follows the dissolution of Gallagher’s initial bid to buy Willis’ reinsurance arm, which was contingent on the completion of the proposed Aon/Willis merger, which the companies called off in late July due to concerns over regulatory delays. The new deal includes an earnout payable by Gallagher in 2025 of up to $750 million in cash. “Broadening our reinsurance brokerage offerings has been a strategic objective at Gallagher, and this acquisition will significantly enhance our global value proposition,” said J. Patrick Gallagher Jr., the company’s chairman, president and CEO, in a press release. “We were very impressed with the Willis Towers Watson reinsurance professionals we met during our initial due diligence and strongly believe a combination will significantly enhance our offerings to clients and prospects.” The transaction is expected to close no later than the end of the first quarter of 2022, according to WTW.