MediaAlpha To Sell Stake To Insignia Capital
White Mountains Insurance Group, Ltd. announced that MediaAlpha has signed a definitive agreement to sell a significant minority stake to Insignia Capital Group in connection with a recapitalization transaction. The transaction values MediaAlpha at approximately $350 million.
“White Mountains will remain a significant equity holder in MediaAlpha going forward with a 42% ownership interest on a fully-diluted basis. MediaAlpha’s founding managers will continue to lead the business, and each will remain a significant equity holder,” the company said.
“White Mountains expects to receive net cash proceeds of approximately $85 million from the transaction. The transaction will result in a gain of approximately $55 to White Mountains’s book value per share and its adjusted book value per share.”
“The transaction is expected to close within 60 days. It is subject to the satisfaction of customary closing conditions and MediaAlpha securing new third-party debt financing of approximately $100 million, the proceeds from which will be used to effect a dividend recapitalization.”
“This transaction is an important milestone for MediaAlpha. It recognizes the significant value that the MediaAlpha team have created to date, and it sets the stage for further value creation going forward,” said Manning Rountree, Chief Executive Officer of White Mountains.
“We are excited to welcome Insignia Capital as our new institutional investment partner. The Insignia team has a proven track record of investing in high-growth marketing technology businesses, and their strategic and operational guidance will be highly valuable.”
White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbol WTM.
