Insurance firm
Allstate has said it is set to acquire SquareTrade in a $1.4 billion deal.
The publicly traded firm will fork out cash and issue debt to finance the transaction,
The Wall Street Journal said in a recent report.
SquareTrade, which is backed in part by Bain Capital, specializes in selling warranties for electronic products. It was established in 1999 as an electronic dispute mediator between eBay buyers and sellers. The firm is considered a disruptive force in risk management because of its online business model.
“This acquisition expands Allstate’s customer relationships with 25 million protection plans for consumer electronics and connected devices,” said Tom Wilson, Allstate chief executive in the report.
The Wall Street Journal said the transaction is awaiting regulatory approvals, among other closing conditions.
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