OneDigital Secures Major Investment to Accelerate Growth
OneDigital Welcomes Strategic Investment
Investment Will Support OneDigital’s Next Phase of Multi-Vertical Growth
OneDigital, a prominent player in insurance brokerage and workforce consulting, has recently announced a significant investment from Stone Point Capital and Canada Pension Plan Investment Board (CPP Investments). This infusion of capital values the company at over US $7 billion and is poised to enable a continued trajectory of growth through strategic acquisitions and organic expansion.
Details of the Investment and Future Plans
This majority investment is particularly noteworthy as it highlights confidence in OneDigital's leadership and innovative business model. The transaction is set to bolster OneDigital's initiatives across five core areas: employee benefits and HR, retirement and wealth management, property and casualty insurance, PEO services, and Medicare Advantage. With this backing, OneDigital aims to enhance its offerings in these areas, providing greater value to its clients.
Leadership Perspectives
Adam Bruckman, President and CEO of OneDigital, expressed enthusiasm about this new partnership, stating, "This commitment from Stone Point Capital and CPP Investments represents two high-quality investors aligning behind a single platform that integrates a multitude of verticals. This gives us the fuel to keep building – investing in both people and technology, while sharpening our capabilities and showing up even stronger for our clients."
The leadership at Stone Point Capital echoes this sentiment, with Managing Director Jarryd Levine highlighting the firm's excitement about partnering with a team known for its sustained growth and innovation. "OneDigital represents an opportunity to partner with a founder-led leadership team whose multi-decade track record of growth and innovation speaks for itself," Levine remarked.
Importance of a Strong Culture and Client Focus
Both Stone Point and CPP Investments recognize the exemplary culture fostered at OneDigital, which has enabled it to sustain resilience in delivering essential services for both businesses and individuals. Sam Blaichman from CPP Investments noted, "OneDigital’s strong culture and differentiated focus on its clients has helped create a resilient business that delivers essential advice and solutions." This partnership will support OneDigital's ongoing expansion, ensuring sustained value for its customers.
Onex's Continued Involvement
Onex Partners, the previous majority investor, will persist as a significant stakeholder and supporter of OneDigital, having invested in the company back in 2020. Adam Cobourn from Onex remarked, "We are as excited about OneDigital today as we were five years ago." This ongoing support from Onex confirms the enduring potential seen in OneDigital’s operations.
Financial Advisors and Legal Counsel
In this investment transaction, Evercore acted as the lead financial advisor to OneDigital while Ardea Partners and Barclays served as additional financial advisors. The legal aspects were managed by Kirkland & Ellis for OneDigital, with J.P. Morgan Securities and RBC Capital Markets advising Stone Point Capital.
About OneDigital
OneDigital's commitment is evident through its mission to empower businesses and individuals by providing integrated insurance, financial, and workforce solutions. With a team dedicated to enhancing the work-life experience of over 100,000 employers and millions of individuals, OneDigital's approach is recognized nationally for its culture of caring and innovation. Founded in 2000 and headquartered in Atlanta, the company continues to maintain a presence in major markets across the nation.
About Stone Point Capital
Stone Point Capital has established itself as a leading alternative investment firm, managing assets exceeding $70 billion. The firm targets investments within the global financial services industry, focusing on creating value through strategic partnerships and innovative financing solutions.
Frequently Asked Questions
What is the significance of the investment from Stone Point Capital and CPP Investments?
This investment highlights confidence in OneDigital's growth strategy and innovation, allowing for continued expansion and enhanced client offerings.
How will this investment impact OneDigital's operations?
The investment is expected to bolster OneDigital’s growth through strategic acquisitions and improvements in technology and services across its core verticals.
What sectors does OneDigital focus on after this investment?
OneDigital focuses on employee benefits and HR, retirement and wealth management, property and casualty, PEO services, and Medicare Advantage.
Who acted as financial advisors for this transaction?
Evercore was the lead financial advisor, with Ardea Partners and Barclays also providing advisory services for OneDigital.
What distinguishes OneDigital’s approach to client service?
OneDigital's strong culture prioritizes client needs, delivering integrated solutions that empower both businesses and individuals to achieve their goals.
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