Shares of Towers Watson & Co. (NASDAQ:TW), a global benefits consultancy, gained on developments related to its now-completed merger with Willis Group Holdings plc. In late November, Willis more than doubled the special dividend payable to Towers Watson shareholders to $10/share, as part of the merger consideration. This proved sufficient to achieve shareholder approval for a “merger of equals” between these two public companies, leading to the formation of Willis Towers Watson plc. We believe the merger could result in meaningful cost synergies, accelerate revenue growth, increase free cash flow generation, reduce the corporate tax rate, and drive modest multiple expansion.
From Baron Funds' Baron Asset Fund commentary for fourth quarter 2015.
