NEW YORK (TheStreet) -- Towers Watson (TW) shares are down 1.82% to $135.70 in pre-market trading after the company merged with insurer Willis Group Holdings (WSH) in an $18 billion all-stock deal.
The combined company will be called Willis Towers Watson and have combined annual revenue of $8.9 billion and 39,000 employees, according to the Associated Press.
Willis shareholders will hold a slight majority of shares, 50.1%, while Towers Watson shareholders will own the remaining 49.9%.
The company's headquarters will be in Ireland where Willis Group is located. Towers Watson is based in Arlington, VA, and the companies estimate that the deal will save them between $100 million and $125 million three years after the closing of the deal.
Willis Group shares are up 7.6% to $48.85 in pre-market trading today.
TheStreet Ratings team rates TOWERS WATSON & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TOWERS WATSON & CO (TW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins."