Allstate Corp. closed this week on its $1.4 billion acquisition of SquareTrade, a consumer protection plan provider that distributes through retailers.
“The addition of SquareTrade to the Allstate family of companies supports our customer-focused strategy and lives into Our Shared Purpose to protect people from life’s uncertainties,” said Tom Wilson, chairman and chief executive officer of Allstate. “As a rapidly growing consumer protection plan provider that distributes through many of America’s major retailers, SquareTrade broadens our protection product portfolio and expands our customer relationships,” he said. “SquareTrade will become even stronger as part of Allstate, enabling it to serve additional retailers and expand its product offering and market reach.”
Allstate acquired the company for $1.4 billion from a group of shareholders, including Bain Capital Private Equity and Bain Capital Ventures. Allstate utilized corporate cash and debt issuance for the acquisition. Ardea Partners, Lazard and Willkie Farr & Gallagher advised Allstate, while Financial Technology Partners and Ropes & Gray advised SquareTrade.
“Joining Allstate will enable SquareTrade to expand into new markets and products that Steve Abernethy and I did not imagine possible when we founded the company in 1999,” said Ahmed Khaishgi, co-founder and chief executive officer of SquareTrade. “We put customers first and provide them the peace of mind that if their television, cell phone or computer breaks, SquareTrade can get them back to normal so they can stay connected with the world. With Allstate, we will gain a broad set of capabilities enabling us to further leverage our distribution, brand and team, while retaining our entrepreneurial spirit,” he said.