Insurer Allstate to buy SquareTrade for $1.4 billion

mardi 29 novembre 2016

Property and casualty insurer Allstate said on Monday it would buy SquareTrade for about $1.4 billion from a group of shareholders that include Bain Capital.

SquareTrade, founded in 1999 by Ahmed Khaishgi and Steve Abernethy, offers extended warranty plans for electronic gadgets.

San Francisco-headquartered SquareTrade's customers include major retailers such as Amazon.com, Costco Wholesale, Sam's Club, Target, Staples, Office Depot and Toys 'R' Us.

The deal, which will help AllState expand into new markets and products, is expected to close in January.

Allstate, which expects the acquisition to dilute its earnings per share for three years, intends to fund the deal with cash and debt.

Ardea Partners, Lazard and Willkie Farr & Gallagher advised Allstate, while Financial Technology Partners and Ropes & Gray advised SquareTrade.

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Insurer Allstate to buy SquareTrade for $1.4 billion

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