October 2014
TRANZACT
Petsky Prunier advises TRANZACT on its majority investment from White Mountains Insurance Group at a valuation of approximately $280,000,000
October 14, 2014 (New York, NY) – Petsky Prunier is pleased to announce it has advised TRANZACT, a leading provider of end-to-end customer acquisition solutions to the insurance sector, on its majority investment from White Mountains Insurance Group, Ltd. (NYSE: WTM), a financial services holding company. The enterprise value of the transaction is approximately $280 million. TRANZACT was a portfolio company of global private investment firm Veronis Suhler Stevenson (VSS).
TRANZACT provides end-to-end, performance-driven customer acquisition solutions to leading insurance carriers and 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. Based in Fort Lee, New Jersey, TRANZACT employs a scalable sales force currently comprised of more than 700 licensed agents.
TRANZACT’s revenue streams are derived from a brand-focused business model that supports the direct-to-consumer distribution capabilities of large insurance companies and marketplaces, such as autoinsurance.com and medicaresupplement.com, where consumers can shop for their insurance needs. The company leverages and integrates sophisticated digital, data, and direct marketing solutions to deliver qualified leads, fully provisioned sales, and robust customer management systems to insurance companies seeking to acquire and manage large numbers of customers.
The investment is a clear recognition of TRANZACT’s proven disruptive success. It will allow TRANZACT to continue to invest in its business and technology platform, execute on attractive growth opportunities, and further solidify the company's position as a leader in the direct-to-consumer insurance space.
White Mountains, a publicly traded, Bermuda-domiciled holding company for global reinsurance businesses, has a long history of successful investments in insurance-related businesses and building partnerships with management teams. Relevant investments include Esurance and Answer Financial.
A team from Petsky Prunier, led by Sanjay Chadda, served as exclusive financial advisor to TRANZACT.
*$280 million is the approximate enterprise value of the transaction
