Allstate to Acquire Squaretrade in $1.4 Billion Deal
November 28 2016 - 6:20PM
Dow Jones News
Allstate Corp. said Monday it had agreed to acquire privately
held Squaretrade Inc., which sells warranties for electronic
products, in a deal worth about $1.4 billion.
"This acquisition expands Allstate's customer relationships with
25 million protection plans for consumer electronics and connected
devices," said Tom Wilson, chief executive at Allstate.
Squaretrade is backed, in part, by Boston-based Bain
Capital.
Allstate will acquire SquareTrade with its cash and by issuing
debt, the company said in a prepared statement. The transaction is
expected to be a drag on Allstate's per-share earnings for three
years. The deal is pending regulatory approvals, among other
closing conditions.
Shares of Allstate slipped 1.4% to $71 in after-hours
trading.
SquareTrade has been a disruptive force in the sector because of
its online sales model, pricing and the information it provides
about failure rates of products. It was founded in 1999 as a
website that mediated disputes between eBay Inc. buyers and
sellers.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
November 28, 2016 18:05 ET (23:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
eBay (NASDAQ:EBAY)
Historical Stock Chart
From Mar 2024 to Apr 2024
eBay (NASDAQ:EBAY)
Historical Stock Chart
From Apr 2023 to Apr 2024
