India, Aug. 31 -- Aon is buying rival USI Insurance Services for $17 billion. Insurance broker Aon announced Monday that it will acquire USI Insurance Services from private equity firm KKR. The deal is worth $17 billion and will bring two major insurance brokers together.

Aon plans to pay for the $17 billion acquisition by taking on new debt. The transaction is expected to close in the fourth quarter, but it still needs approval from regulators, as reported by CNBC.

The deal is mainly focused on the US middle market. Aon CEO Greg Case said the merger will create what he called the "premier US middle-market platform." The company wants to use the combined business to offer more insurance and risk-management services to smaller and mid-si...