Credit: Shutterstock photoMercer, a wholly owned subsidiary of Marsh & McLennan CompaniesMMC , announced its intention to purchase Human Resources Business Solutions ("HRBS"). Engaged in providing career and talent consulting and information services to clients across Asia, HRBS has a good market presence in Hong Kong, Singapore and mainland China.
The acquisition of this 14-year old company will spread Mercer's compensation and benefits expertise in the Asian market. Mercer perceives human resource consulting as a market with strong growth potential, given the region's high demand talent markets.
With HRBS, Mercer will be able to provide talent management services across Asia via the employee enumeration information of the former that spans from multinational companies to publicly listed firms. These services include remuneration strategy, pay structure design, short- and long-term incentive design and performance management for employees. Mercer will also provide its clients with regular reviews such as Executive Pay Survey, an Employee Benefits Survey and industry-specific surveys across numerous sectors, including luxury goods, retail, garment buying, market research, marketing services, Internet and construction.
Apart from the HRBS acquisition, which will expand Mercer's products and services, the company also announced its purchase of Comptryx last week. Comptryx is a global pay and workforce metrics business specializing in the technology sector and providing up-to-date online tools to assess total labor force costs.
Marsh & McLennan's is always on its toes when it comes to acquiring new business. Its strategic acquisitions and well-executed restructuring initiatives have generated new clients, triggering growth. Some of the recent acquisitions made by the company are of Tequesta Insurance Advisors, Cline Wood Agency, Vézina and J.W. Terrill. It has also recently tied up with Livongo Health. The company's Dovetail Insurance acquisition is also on track and is expected to close in the third quarter.
Currently, Marsh & McLennan carries a Zacks Rank #3 (Hold). Some better-ranked players in the space are Brown & Brown Inc. BRO , Hannover Rück SE HVRRY and eHealth, Inc. EHTH . Each of these stocks carries a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
