AJ Gallagher

The merging brokers have also agreed a two-year non-compete agreement on transferring Willis business.

The transaction is a sign that the mega-deal to buy $3.6bn of assets from Willis Towers Watson has not slowed down AJG’s bolt-on acquisitions strategy.

With the planned disposal of a further $240mn of Ebitda, the parties are showing their commitment to closing the overall deal.

The executive will be based in Chicago and previously worked at Aon and Marsh.

The transaction accelerates Gallagher’s evolution into a big global broker and risk management consultant.

The CEO says the $3.6bn transaction accelerates AJG's European strategy by five years.

The $3.57bn side deal is contingent on the closing of the bigger merger, which itself needs approval from regulators including the European Commission and Department of Justice.

S&P said it believed Gallagher can "non-disruptively absorb the acquired business".

Despite the sizable divestitures at a painful price, the deal maintains its appeal across most strategic and financial aspects.

The AJG CEO vowed to invest in Willis Re assets while stressing the quality and security of the team.

The buyer says the deal involves revenue of about $1.3bn and earnings of around $357mn.

The deal is designed to address antitrust concerns to smooth the way for the mega merger to close.