Monthly Industry Pulse

WTW’s $1.3B Newfront Acquisition Caps 2025, Alongside UKG’s SMB Expansion, UnitedHealth-Amedisys Record Divestiture & More Industry Moves

December’s HR tech, wellness, and benefits activity sits at the intersection of reflection and forecast, pointing to how the trends that defined 2025 are set to carry forward in 2026.
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December brought the final chapter of a year of transformation.

In 2025, the HR tech, wellness, and benefits landscape was marked by aggressive consolidation for both brokers and vendors.

The year opened with news of Paychex’s $4.1 billion acquisition of Paycor in January and is now closing with WTW’s $1.3 billion purchase of Newfront.

Thoma Bravo’s $12.3 billion take-private of Dayforce, Workday’s $1.1 billion acquisition of Sana, and UnitedHealth’s hard-fought $3.3 billion Amedisys deal (finally approved in December with record divestiture requirements) were some of the highlights of a year that saw dozens of strategic combinations.

But 2025 wasn’t simply about consolidation.

It also marked the maturation of artificial intelligence from marketing promise to operational reality.

A recent analysis of the state of AI in 2025 reveals its growing adoption, with 88% of organizations now regularly utilizing it in at least one business function (up from 78% in 2024).

However, what stood out throughout the year was the noticeable move from “AI-enabled” features to “AI-native” systems that autonomously process payroll, conduct interviews, manage benefits, and provide financial guidance.

December’s activity sits at the intersection of reflection and forecast, pointing to how the trends that defined 2025 are set to carry forward.

WTW Acquires Tech-Native Broker Newfront in $1.3B Deal

Willis Towers Watson has entered into a definitive agreement to acquire Newfront

This deal emerged as one of the most closely watched developments of December, reinforcing the direction of recent market activity.

It’s valued at up to $1.3 billion, with $1.05 billion at closing, with up to $250 million in contingent consideration tied to performance targets. An additional $150 million could be paid if Newfront exceeds revenue growth targets.

Founded as a technology-native broker, Newfront is known for combining deep industry expertise with cutting-edge technology. It serves clients across more than 20 industries, with particular strength in technology and fintech.

The acquisition brings its proprietary client-facing platform, Navigator, and agentic AI-driven placement automation capabilities into WTW’s ecosystem.

This combination strengthens our presence in the U.S. middle market, accelerates our technology and specialty strategies, and enables the delivery of an integrated, end-to-end technology platform that will drive growth, enhance operational efficiency, and better serve our clients,” said Carl Hess, WTW’s Chief Executive Officer.

The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals.

Read the full press release here: WTW To Acquire Newfront, A Specialized Broker Combining Deep Expertise And Cutting-Edge Technology

HSA Bank Strengthens Financial Wellness Through SecureSave Deal

Continuing the consolidation trend, HSA Bank, a division of Webster Bank and Webster Financial Corporation, has acquired SecureSave, a leading provider of employer-sponsored emergency savings. 

With this deal, the company is positioning itself as one of the country’s largest providers of emergency savings accounts.

The deal, completed on December 4, extends the growing trend of holistic financial wellness solutions that address immediate needs alongside long-term retirement planning.

Employers offering emergency savings through payroll deductions can help give employees peace of mind and prepare for unplanned life events,” said Chad Wilkins, HSA Bank President, expressing his excitement over the deal that will allow workers to take control of their financial health and wealth journey.

SecureSave will continue to operate on its current platform while gaining access to HSA Bank’s broader suite of financial services.

Read the full press release here: HSA Bank Acquires SecureSave

Paychex Launches AI Suite to Transform HCM Experience

Throughout 2025, AI evolved from a marketing feature to an essential operational infrastructure.

Paychex‘s recent initiatives demonstrate how the trend is gaining traction across HR and payroll platforms.

In December, the company announced a comprehensive suite of AI-driven innovations that transform HCM from user-directed to AI-powered operations.

Paychex deployed agentic AI solutions for payroll automation. It also launched a patent-pending system for extracting insights from unstructured data and GenAI platforms for personalized recommendations and compliance guidance.

We are accelerating innovation across our platforms to democratize AI with a goal of making enterprise-grade AI technology accessible to all businesses,” said the company CEO, John Gibson.

The innovations roll out across Paychex’s three purpose-built platforms, Paychex Flex, Paycor, and SurePayroll, following the company’s $4.1 billion Paycor acquisition in January 2025.

Read the full press release here: Paychex Unveils Intelligent AI Solutions to Revolutionize Workforce Management

Vestwell Acquires Accrue 401k, Adding Nearly 30,000 Guideline Retirement Plans

Following Gusto’s acquisition of Guideline in August 2025, Vestwell has agreed to acquire Accrue 401k, the entity created to support retirement plans not included in that transaction.

The deal, expected to close in early 2026, adds nearly 30,000 plans and 350,000 savers to Vestwell’s platform, significantly expanding its national footprint.

If we’re going to close the $50 trillion savings gap in the U.S., saving needs to be synonymous with earning,” said Vestwell founder and CEO Aaron Schumm, emphasizing that payroll connectivity is foundational for workplace savings.

The company will serve Accrue 401k clients accessing retirement plans through Intuit QuickBooks, Rippling, Paylocity, Deel, Square, OnPay, BambooHR, and other providers.

Read the full press release here: Vestwell to Acquire Accrue 401k, Becoming the New Home for Nearly 30,000 Guideline Retirement Plans

Court Approves $3.3B UnitedHealth-Amedisys Deal with Record Divestiture Requirements

In a final update following a lengthy regulatory battle, the Maryland district court has officially approved the Justice Department’s settlement in the UnitedHealth Group and Amedisys merger.

This final step clears the path to complete the $3.3 billion acquisition, which includes the largest divestiture of outpatient healthcare facilities in history.

The settlement requires divestiture of at least 164 home health and hospice locations across 19 states, representing approximately $528 million in annual revenue. Amedisys must also pay a $1.1 million civil penalty for failing to submit complete regulatory filings.

The approved deal allows UnitedHealth to expand its Optum and LHC Group footprint while preserving competition in local markets, a resolution to one of 2025’s most contentious healthcare transactions.

Read the full press release here: Court Approves Justice Department’s Settlement in UnitedHealth Group and Amedisys Merger

UKG Expands SMB Capabilities with Inova Payroll Acquisition

UKG has agreed to acquire Inova Payroll, a provider of HCM and payroll services for small and mid-sized employers.

Based in Nashville, Inova serves more than 4,000 businesses and operates as the largest reseller of the UKG Ready suite nationwide. 

This acquisition, expected to close in early 2026, enables UKG to directly provide SMBs with outsourced HR support and comprehensive benefits brokerage services.

Joe Schweppe, CEO at Inova Payroll, described the deal as an exciting new chapter, noting that their team and clients will benefit from direct access to enhanced product development. At the same time, UKG gains deep expertise in attracting and supporting small and mid-sized businesses.

The deal continues UKG’s aggressive expansion following its acquisitions of Shiftboard and Chattr earlier in the year, as well as its October rebrand as a “Workforce Operating Platform.”

Read the full press release here: UKG Agrees to Acquire Inova Payroll

NFP Acquires Hamilton Insurance Agency

We conclude this monthly round-up with news of NFP, an Aon company, acquiring Hamilton Insurance Agency.

For decades, Hamilton has served as one of the nation’s largest independent brokerages, specializing in senior housing and long-term care, and offering comprehensive insurance, risk management, and integrated benefits administration.

The deal includes Hamilton’s proprietary benefits administration technology, BeneLink Connect, and risk management tool, Electronic Risk Management Assistant, reflecting the growing importance of technology assets in brokerage acquisitions.

Read the full press release here: NFP, An Aon Company, Acquires Hamilton Insurance Agency, Expanding Its Risk Management and Integrated Benefits Administration Capabilities

Written by tamara jovanovska

Content Writer at Shortlister

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