Innovative Leader in Insurance Distribution and Marketing
Services to be Run by Existing Management Team, including Current
President Andy Nelson
CHICAGO, Oct. 1, 2024
/PRNewswire/ -- GTCR, a leading private equity firm, announced
today that it has signed a definitive agreement to acquire
TRANZACT, a leading direct-to-consumer insurance services company,
in a corporate carve-out from WTW PLC ("WTW", NASDAQ: WTW), a
leading global advisory, broking and solutions company. GTCR is
investing in TRANZACT alongside Recognize, a technology services
investment platform. Andy Nelson,
President of TRANZACT, and the existing management team will
continue to lead the business and partner with GTCR and Recognize.
The transaction values TRANZACT at $632.4
million.
Headquartered in Fort Lee, NJ,
TRANZACT provides a full suite of capabilities across marketing and
demand generation, sales execution, post-sales engagement and
technology solutions. The business currently serves as the platform
of choice for several large insurance carrier partners and is the
agent of record for over one million active insurance policies
across Medicare Advantage, Medicare Supplement and Life &
Supplemental insurance markets.
GTCR and Recognize's investment will build on TRANZACT's strong
performance and target areas of growth amongst its insurance
carrier partners. Together, GTCR, Recognize and TRANZACT will
implement a strategy to drive continued innovation, with additional
capital available to help fund the expansion and enhancement of its
services across this unique customer acquisition platform. As an
independent company, TRANZACT will continue to focus on delivering
best in class, reliable services and solutions across the insurance
industry.
"We are excited to partner with Recognize, Andy and the talented
team at TRANZACT and continue to build on their innovative
platform," said David Donnini,
Managing Director and Head of Business & Consumer Services at
GTCR. "We have known Andy for many years and have always admired
TRANZACT and their truly unique, data-driven marketing model for
the insurance industry. Over the years, TRANZACT has developed
deep, trusted partnerships with some of the industry's most
recognized insurers and, along with its strong brand, has
positioned itself well to continue to gain share as we look to
expand and enhance its offering. Importantly, they have also
established a reputation for exceptional service and
quality to the end consumers."
"As the insurance marketplace evolves, TRANZACT will continue to
play a critical role in helping carriers deliver quality service to
their customers and better react to their evolving needs," said
David Wasserman, Co-Founder and
Managing Partner of Recognize. "We are thrilled with the
opportunity to partner with GTCR, and alongside Andy and this
management team, which we have known for many years. Their ongoing
leadership at TRANZACT will be invaluable as we look to further
develop the company's capabilities, particularly their unique and
specialized services offerings for the insurance markets."
Mr. Nelson, President of TRANZACT, will become CEO of the
standalone business at closing, alongside the rest of the
management team who will continue in their current roles. Mr.
Nelson has been a senior executive with TRANZACT since 2003,
President since 2016, and has spent his entire career in
direct-to-consumer marketing and building deep expertise and
relationships in the insurance sector.
GTCR has a longstanding relationship with Mr. Nelson, who
currently serves as an independent director on the Board of
Consumer Cellular, another portfolio company of the firm. Likewise,
the Recognize leadership team was part of a group that had
previously invested in TRANZACT before it was sold to WTW in 2019
and worked with Mr. Nelson closely during that time.
"Today marks an important milestone in TRANZACT's journey and we
are excited about our future together with our new partners at GTCR
and Recognize," said Mr. Nelson. "Over the last two decades, the
TRANZACT team has worked tirelessly to build a leading insurance
marketplace platform, known for quality service and innovative
solutions. We are confident that in becoming an independent
company, we will be able to continue to meet the needs of our
insurance carrier partners and the consumers and drive growth
across our business. We are incredibly grateful for the team at WTW
for their support of our strategy and their partnership over the
past five years."
"TRANZACT is a high-quality business, a leading provider in an
area of the insurance market that we have followed for the last
several years and know well," said Tom
Ehrhart, Managing Director at GTCR. "Along with our partners
at Recognize, we believe that TRANZACT's suite of services are well
positioned for continued growth across the insurance landscape.
Andy and his team are dynamic leaders, and we believe they are the
right team to bring this company forward in a new chapter of
independent growth."
The transaction is expected to close by the end of 2024, subject
to regulatory approvals and customary closing conditions.
About GTCR
Founded in 1980, GTCR is a leading
private equity firm that invests behind The Leaders Strategy™ –
finding and partnering with management leaders in core domains to
identify, acquire and build market-leading companies through
organic growth and strategic acquisitions. GTCR is focused on
investing in transformative growth in companies in the Business
& Consumer Services, Financial Services & Technology,
Healthcare and Technology, Media & Telecommunications sectors.
Since its inception, GTCR has invested more than $25
billion in over 280 companies, and the firm currently
manages $40 billion in equity capital. GTCR is based
in Chicago with offices in New
York and West Palm Beach. For more information, please
visit www.gtcr.com. Follow us on LinkedIn.
About Recognize
Recognize is an investment platform
exclusively focused on the digital services industry. The firm
provides operational expertise, industry insights and strategic
capital to innovative companies in this sector. To learn more,
visit www.recognize.com. Follow us on LinkedIn.
About TRANZACT
TRANZACT specializes in addressing
consumers' insurance needs through our comprehensive
direct-to-consumer marketing, sales, servicing, and technology
capabilities. We leverage our expertise in distribution solutions
to actively engage consumers and deliver a best-in-class
experience. Our innovative approach allows us to partner with
leading insurance brands to serve customers with the highest level
of care and attention.
For GTCR
Andrew
Johnson
212-835-7042
andrew.johnson@gtcr.com
For Recognize
Chris Tofalli Public Relations
Chris Tofalli
914-834-4334
chris@tofallipr.com
This communication contains "forward-looking statements" within
the Private Securities Litigation Reform Act of 1995. Any
statements contained in this communication that are not statements
of historical fact, including statements about GTCR, Recognize and
TRANZACT's ability to consummate the proposed transaction and the
expected benefits of the proposed transaction, may be deemed to be
forward-looking statements. All such forward-looking statements are
intended to provide management's current expectations for the
future of TRANZACT based on assumptions relating to TRANZACT's
business, the economy and other future conditions. Forward-looking
statements generally can be identified through the use of words
such as "believes," "anticipates," "may," "should," "will,"
"plans," "projects," "expects," "expectations," "estimates,"
"forecasts," "predicts," "targets," "prospects," "strategy,"
"signs," and other words of similar meaning in connection with the
discussion of future performance, plans, actions or events. Because
forward-looking statements relate to the future, they are subject
to inherent risks, uncertainties and changes in circumstances that
are difficult to predict. Such risks and uncertainties include,
among others: (i) the timing to consummate the proposed
transaction, (ii) the risk that a condition of closing of the
proposed transaction may not be satisfied or that the closing of
the proposed transaction might otherwise not occur, (iii) the risk
that a regulatory approval that may be required for the proposed
transaction is not obtained or is obtained subject to conditions
that are not anticipated, (iv) the diversion of management time on
transaction-related matters, (v) risks related to disruption of
management time from ongoing business operations due to the
proposed transaction, (vi) the risk that the proposed transaction
and its announcement could have an adverse effect on the ability of
TRANZACT to retain customers and retain and hire key personnel and
maintain relationships with its suppliers and customers, (vii) the
occurrence of any event, change or other circumstance or condition
that could give rise to the termination of the acquisition
agreement, (viii) unexpected costs, charges or expenses resulting
from the proposed transaction, (ix) worldwide economic or political
changes that affect the markets that TRANZACT's businesses serve
which could have an effect on demand for TRANZACT's products and
impact TRANZACT's profitability and (x) disruptions in the global
credit and financial markets, including diminished liquidity and
credit availability, changes in international trade agreements,
including tariffs and trade restrictions, cyber-security
vulnerabilities, foreign currency volatility, swings in consumer
confidence and spending, raw material pricing and supply issues,
retention of key employees, increases in fuel prices and outcomes
of legal proceedings, claims and investigations. Accordingly,
actual results may differ materially from those contemplated by
these forward-looking statements. Forward-looking statements are
neither statements of historical fact nor guarantees or assurances
of future performance.
These forward-looking statements speak only as of the date of
this communication, and GTCR, Recognize and TRANZACT do not assume
any obligation to update or revise any forward-looking statement
made in this communication or that may from time to time be made by
or on behalf of GTCR, Recognize or TRANZACT.
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SOURCE GTCR