White Mountains Insurance Group Ltd. is considering the sale of its New Jersey-based insurance sales operation, MG LLC.
According to a report from the
Wall Street Journal, a number of private equity investors have already been approached about investing in MG LLC, also known as Tranzact.
Tranzact is composed of insurance technology solutions provider Cignium and digital insurance agency TZ Insurance Solutions LLC. The company has about 1,100 employees throughout the U.S., Peru, and Guatemala. Tranzact has been known to work with insurance providers such as Aetna, Humana, General Insurance, MassMutual Financial,
MetLife, and Wal-Mart Stores Inc.
Reports from trusted sources revealed that “Tranzact has earnings before interest, taxes, depreciation and amortization north of $50 million and is attracting interest from potential strategic buyers.”
Purportedly, first-round bids ended late March, said the sources for the article.
In October 2014, White Mountains acquired a 63% majority stake in Tranzact, which had been at that time supported by Veronis Suhler Stevenson and Ares Management. The deal’s price then was $178 million, with an enterprise value of $280 million.
Immediately following the transaction, White Mountains claimed that Tranzact completed a recapitalization that gave White Mountains $44 million back.
WSJ’s source said that at that time, Tranzact had EBITDA of a little over $30 million when it was sold to White Mountains.
