Willis Towers Watson (WTW) has acquired the direct-to-consumer healthcare organization TRANZACT.
A release revealed that the total purchase price of the transaction is $1.2 billion in closing consideration; with an additional potential earn-out of up to $200 million payable in either cash or stock in 2021 should financial targets be met.
Following the transaction, TRANZACT will operate as part of WTW’s Benefits Delivery and Administration (BDA) business.
TRANZACT links individuals to US insurance carriers via digital marketing, sales, and data science expertise, a release said. The company boasts 1,300 employees, including 850 licensed agents. The firm currently markets a wide range of products, such as Medicare Advantage, Medicare Supplement, Prescription Drug Plan (PDP), and ancillary products which include dental, vision, life and indemnity.
“We are delighted to announce the acquisition of TRANZACT which represents a significant growth opportunity in the direct-to-consumer US healthcare space and speaks to Willis Towers Watson’s renewed focus on strategic M&A opportunities,” said WTW CEO John Haley in a statement.
Haley added that the deal would help accelerate WTW’s direct-to-consumer strategy, and help pave the way for an end-to-end consumer acquisition platform.
TRANZACT CEO David Graff commented that the deal combines his company’s and WTW’s complementary strengths, greatly benefiting both carriers and customers.
“The powerful combination of our technology-driven, direct-to-consumer solutions and Willis Towers Watson’s scale, leading infrastructure and participant engagement capabilities creates a unique and differentiated capability in the marketplace,” Graff remarked.