Boston, MA 10/14/2014 (wallstreetpr) – According to reports, White Mountains Insurance Group Ltd (NYSE:WTM) and TRANZACT have announced collectively that WTM has made the maximum investment in TRANZACT. It is one of the leading end-to-end customers acquisition solution providers in the insurance sector of the nations. As per the information, WTM paid close to $178 million for acquiring 63% stake in TRANZACT.
Insights of the matter:
Total enterprise value of TRANZACT is close to $280 million. As soon as the acquisition transaction took place, it executed a recapitalization transaction, which resulted in $44 million capital gain for White Mountains Insurance Group Ltd (NYSE:WTM) i.e. TRANZACT had to return $44 million to WTM. Before the execution of this deal, TRANZACT was a portfolio company of two organizations named Ares Management, L.P. and Veronis Suhler Stevenson (VSS). Between Ares and VSS, the latter one had the major shareholding.
TRANZACT is one of the largest market players in the field of performance driven customer acquisition solutions. It provides services to most of the major insurance carriers throughout the country. Apart from offering customer acquisition solutions, it also distributes insurance products across the nation and holds a leading place among all the major distributors. Major expertise fields of TRANZACT are life, health, home and auto insurance. It reaches a lot of new customers each week. There are more than 700 licensed insurance advisors that work day in day out in the sales team of TRANZACT. According to David Graf, CEO of TRANZACT, the entire management team of the company is looking forward to welcoming WTM. Both Ares and VSS have done tremendous work in the past, now TRANZACT will look forward to writing new success story with White Mountains Insurance Group Ltd (NYSE:WTM).
Ray Barrette, Chairman and CEO of White Mountains Insurance Group Ltd (NYSE:WTM) stated that TRANZACT had an impeccable track record in the insurance sector, and WTM would look forward to utilizing its experience and expertise for exploring opportunities in this field.
