Marsh & McLennan (MMC) - Get Report will purchase risk consulting provider Kroll Inc. (KROL) for $1.9 billion in cash.

Under the definitive agreement, Kroll shareholders will receive $37 a share, representing a 31.7% premium above Kroll's closing stock price on Thursday of $28.10.

In a press release, Marsh CEO Jeffrey W. Greenberg said the deal "expands our capacity in several important sectors that complement our existing businesses, such as corporate restructuring, business intelligence and investigations, security services, employee screening, and electronic evidence and litigation support."

Marsh expects the transaction, which will be completed in the third quarter, will add to its earnings in 2005.