Mercer to Acquire the Health and Welfare and Qualified Plans Practices of Ft. Lauderdale-Based Mahoney & Associates

Mercer announced today that it has signed a definitive agreement to acquire Ft. Lauderdale-based Mahoney & Associates' health and welfare and defined contribution advisory practices. The transaction will make Mercer the largest health and benefits broker in the Miami/Ft. Lauderdale Florida brokerage market, the ninth largest market in the US.

The transaction is expected to close on or about August 31. Terms of the agreement were not disclosed.

"Mercer is the US market leader in health and benefits, and this acquisition combines our intellectual insights and competitively-differentiated products with Mahoney & Associates' recognized leadership in the Miami/Ft. Lauderdale market," said David P. Rahill, US Region Leader for Mercer health and benefits business. "The Mahoney firm is highly regarded as a significant leader in one of the most attractive markets in the US, and has well-established relationships with mid- and large-sized employers in Florida and across the US. Mahoney & Associates expands our own fast-growing and successful Florida H&B consulting and brokerage capabilities with its quality people and clients, and adds to Mercer a Florida-based DC Advisors presence, all in the large and vibrant Miami/Ft. Lauderdale market. This acquisition of a quality benefit brokerage firm supports our strategic growth objectives."

Rising health care costs and the risk of diminishing employee productivity due to health issues are among the most significant issues facing employers today. Added to that burden is the need to navigate the compliance requirements of health care reform and ever-evolving federal and state laws, regulations and procedures.

Mr. Rahill noted that, "With the industry's top experts, dedicated local teams, and an array of proprietary financial management and wellness tools, Mercer can help employers deal with these challenges. This transaction allows us to deliver this expertise through the most highly regarded brokerage firm in the Miami/Ft. Lauderdale area. We believe this will be a highly attractive service proposition for the clients we now jointly serve, and will be the basis for attracting significant numbers of new employers."

"Merging our operations into Mercer is a significant triple win," said William E. Mahoney, Jr., Mahoney & Associates founder and president. "It's a win for both firms as we continue to focus on growing our combined practice under the Mercer umbrella. It's a win for Mahoney employees who will now have access to greater resources and be with one of the largest benefits consulting practices in the US. And, most importantly, it is a huge win for our loyal clients who will now have access to all of the many and diverse resources of Mercer."

The Mahoney & Associates acquisition also expands the distribution capabilities of Mercer DC Advisors in the Miami/Ft. Lauderdale market. Mercer's DC Advisors provides consulting, advisory and brokerage services designed to meet employers' goals and objectives for their small to medium-sized defined contribution retirement plans - 401(k), 403(b) and profit sharing plans.

About Mercer

Mercer is a global leader in human resource consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues by designing, implementing and administering health, retirement and other benefit programs. Mercer's investment services include investment consulting, implemented consulting and multi-manager investment management. Mercer's 20,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol:MMC) on the New York and Chicago stock exchanges. For more information, visit www.mercer.com.

About Mahoney & Associates

Established in 1963 by William E. Mahoney, Jr., Mahoney & Associates is a growing compensation and benefits management firm with a committed staff of creative professionals. Through the years, Mahoney has witnessed increasing complexity in the benefits management profession. In the beginning, the firm helped its clients more effectively purchase insurance products -- that was the role of a good benefits broker. As its clients' businesses grew more successful and as the regulatory environment grew more complex, Mahoney's role expanded. Mahoney & Associates then became benefits consultants to its clients, helping them develop solutions -- where products played only one part in the overall benefits plan. Today Mahoney manages the whole process -- collecting and analyzing appropriate data, developing integrated plan alternatives, carrying out all the steps of implementation and communications, performing a wide range of administrative functions and providing complete performance and suitability evaluations every year.