Sunday, Towers Watson & Co. (TW) completed the merger of Towers Perrin and Watson Wyatt. The transaction to form Towers Watson was announced on June 28, 2009. John Haley, Chief Executive Officer of Watson Wyatt, will serve as Towers Watson's Chairman and Chief Executive Officer. Mark Mactas, Chief Executive Officer Towers Perrin, will serve as Deputy Chairman, President and Chief Operating Officer.
The company noted that the merger follows receipt of all necessary regulatory authorizations and approval of the transaction by the companies' respective shareholders on December 18, 2009. Towers Watson's Class A common stock will be listed on both the NYSE and NASDAQ under the ticker symbol (TW) as of January 4, 2010. Trading of Watson Wyatt's Class A common stock under the previous ticker symbol (WW) will be discontinued at that time. Based on the closing price of Watson Wyatt common stock on December 31, 2009, the implied value of the transaction is $4 billion.
As a result of the merger, Towers Watson expects to issue approximately 46.9 million shares of Class A common stock, as well as approximately 29.5 million shares of Class B common stock, which will be subject to transfer restrictions and will generally convert into freely-tradable shares of Class A common stock on a one-for-one basis over the next four years. Towers Watson will also pay $200 million in cash and issue one-year promissory notes in an aggregate principal amount of $200 million to certain former Towers Perrin shareholders who have voluntarily elected to terminate their employment with Towers Watson.
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