A U.S. benefits consulting firm is forming a new alliance in Europe.

Watson Wyatt Worldwide, Washington, is setting up a major alliance with the Institut fur Finanz- und Aktuarwissenschaften, Ulm, Germany.

Watson Wyatt agreed in May to acquire Dr. Dr. Heissmann GmbH., Wiesbaden, Germany, a pension, benefits and human resources consulting firm.

IFA is a German insurance consulting organization.

The Watson Wyatt-IFA alliance agreement calls for Watson Wyatt to acquire 20% of IFA and for IFA to integrate Watson Wyatt’s German insurance consulting operations with its own operations, according to Watson Wyatt and IFA.