White Mountains Invests In TRANZACT
White Mountains Insurance Group, Ltd. has made a majority investment in TRANZACT, a leading provider of end-to-end customer acquisition solutions to the insurance sector. White Mountains acquired approximately 63% of TRANZACT for a purchase price of $178 million, representing an enterprise value of approximately $280 million.
Immediately following the closing, TRANZACT completed a recapitalization that allowed for the return of $44 million in capital to White Mountains. Prior to the transaction, TRANZACT was a portfolio company of Veronis Suhler Stevenson [VSS] and Ares Management, L.P. VSS was the majority owner of TRANZACT.
TRANZACT provides end-to-end, performance-driven customer acquisition solutions to leading insurance carriers and today is a market leader in the direct-to-consumer distribution of insurance products. The company serves the health, life, auto, and home insurance segments and reaches millions of consumers each week. TRANZACT employs a scalable sales force currently comprised of more than 700 licensed insurance agents.
“Our team is excited and committed to extending our track record of market leadership and unparalleled execution in direct-to-consumer insurance solutions. VSS and Ares have been strong, supportive partners to TRANZACT over the years. We very much look forward to continuing our growth trajectory with White Mountains in the years to come,” said David Graf, CEO of TRANZACT.
“TRANZACT is uniquely positioned to help insurance companies reach consumers. We at White Mountains are excited to partner with the TRANZACT management team to help them execute on their vision,” said Ray Barrette, Chairman and CEO of White Mountains.
Based in Fort Lee, NJ, TRANZACT’s revenue streams are derived from a brand-focused business model that supports the direct-to-consumer distribution capabilities of large insurance companies as well as marketplaces, such as medicaresupplement.com and autoinsurance.com, where consumers can shop for their insurance needs.
Petsky Prunier Securities LLC acted as financial advisor to TRANZACT, while Lowenstein Sandler LLP provided legal advice. Cravath, Swaine & Moore LLP acted as legal advisor to White Mountains.
