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Allstate is buying a fintech company for $1.4 billion

Top #AI Allstate is buying a fintech company for $1.4 billion  thoughts? via @businessinsider

  • San Francisco-headquartered SquareTrade’s customers include major retailers such as Amazon.com Inc, Costco Wholesale Corp, Sam’s Club, Target Corp, Staples Inc, Office Depot Inc and Toys ‘R’ Us Inc.
  • Property and casualty insurer Allstate Corp said on Monday it would buy SquareTrade Holding Co Inc for about $1.4 billion from a group of shareholders that include Bain Capital.
  • The deal, which will help AllState expand into new markets and products, is expected to close in January.
  • Author Brian Posted on November 29, 2016 Tags Ardea Partners , deal , electronic gadgets , Financial Technology Partners , major retailers , Maju Samuel , new markets , San Francisco-headquartered SquareTrade , warranty plans , Willkie Farr
  • @businessinsider : Allstate is buying a fintech company for $1.4 billion

The deal, which will help AllState expand into new markets and products, is expected to close in January. @businessinsider: Allstate is buying a fintech company for $1.4 billion


@FundedNews: Top #AI Allstate is buying a fintech company for $1.4 billion thoughts? via @businessinsider

The deal, which will help AllState expand into new markets and products, is expected to close in January.

The deal, which will help AllState expand into new markets and products, is expected to close in January.

Property and casualty insurer Allstate Corp said on Monday it would buy SquareTrade Holding Co Inc for about $1.4 billion from a group of shareholders that include Bain Capital.

SquareTrade, founded in 1999 by Ahmed Khaishgi and Steve Abernethy, offers extended warranty plans for electronic gadgets.

San Francisco-headquartered SquareTrade’s customers include major retailers such as Amazon.com Inc, Costco Wholesale Corp, Sam’s Club, Target Corp, Staples Inc, Office Depot Inc and Toys ‘R’ Us Inc.

The deal, which will help AllState expand into new markets and products, is expected to close in January.

Allstate, which expects the acquisition to dilute its earnings per share for three years, intends to fund the deal with cash and debt.

Ardea Partners, Lazard Ltd and Willkie Farr & Gallagher advised Allstate, while Financial Technology Partners and Ropes & Gray advised SquareTrade.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

Allstate is buying a fintech company for $1.4 billion