Towers Watson has acquired Extend Health, which operates the largest private Medicare exchange in the US.

The firm said that the deal will enable it to offer employers with health care solutions that combine specialized retiree medical transition consulting with the choice and cost advantages of individual Medicare plans purchased on a private exchange.

Towers Watson CEO John Haley said Extend Health’s proven infrastructure and scalable exchange platform bring a dynamic new offering to Towers Watson.

"Our market-leading solutions will provide our clients with an immediate and unprecedented opportunity to deliver retiree medical benefit packages in a new and cost-effective way," Haley said.

Upon completion of the integration of both units, Extend Health will operate as a new business segment called Exchange Solutions within Towers Watson alongside the existing segments of Benefits, Talent and Rewards, and Risk and Financial Services.

Extend Health co-founder and CEO Bryce Williams will spearhead the new segment, said Towers Watson.

"We are excited to join Towers Watson at this crucial time when many companies are rethinking their retiree health benefits," said Williams.

"We look forward to meeting the evolving needs of employers and retirees by building on both organizations’ deep commitment to innovative, proven solutions and unwavering client service."