CHICAGO ( TheStreet) -- Aon ( AON) has agreed to acquire Hewitt Associates ( HEW) for $50 a share, or $4.9 billion in cash and stock.

The share price of the transaction is a 41% premium to Hewitt's closing price Friday of $35.40.

In a statement Monday, Aon, the insurance broker, said it plans to integrate Hewitt with its existing Aon Consulting operations and run the segment under the newly created Aon Hewitt brand.

Hewitt is a human resources consulting and outsourcing company.

Aon said the deal will save $355 million annually beginning in 2013.

-- Reported by Joseph Woelfel in New York.

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