OneDigital Secures Major Investment to Fuel Future Growth
OneDigital Secures Significant Investment from Top Firms
OneDigital, a prominent insurance brokerage and financial services firm, has announced a transformative majority investment from funds managed by Stone Point Capital and Canada Pension Plan Investment Board (CPP Investments). This notable transaction values OneDigital at an impressive US $7 billion, paving the way for enhanced growth through both organic strategies and targeted acquisitions.
Enhancing Multi-Vertical Growth
The current investment highlights a critical step in OneDigital's journey, enabling the firm to elevate its integrated insurance, financial, and workforce consulting offerings. OneDigital’s leadership embraces this influx of capital as a means to further its mission of delivering comprehensive solutions that empower both businesses and individuals across various sectors.
Investment Overview
Having just celebrated a milestone anniversary, OneDigital is set to leverage this funding to broaden its scope in five core operational verticals: employee benefits and human resources, retirement and wealth management, property and casualty, PEO, and Medicare Advantage. The significance of this transaction is underscored by its designation as the firm’s fourth equity recapitalization, which reflects enduring trust in its founder-led leadership along with a commitment to innovation.
Perspective from Leadership
"This financial backing from Stone Point Capital and CPP Investments symbolizes a pivotal moment for us," expressed Adam Bruckman, the company's President and CEO. "It empowers us to intensify our investment in both human capital and technology, enhancing our capabilities to better serve our clients. We are appreciative of our ongoing partnership with Onex, which has positively contributed to our growth over the last five years.”
The Vision Ahead
The enthusiasm shared by the leadership of Stone Point Capital reflects their belief in OneDigital's potential. Jarryd Levine, Managing Director at Stone Point, commented, "Partnering with a leadership team marked by an impressive history of growth and innovation speaks volumes about OneDigital’s market positioning. We are eager to support their evolutionary journey towards value creation.”
Building on Strong Foundations
CPP Investments is equally optimistic, emphasizing OneDigital's effective client-centric culture. Sam Blaichman, Managing Director at CPP Investments, remarked, "This new investment alongside our partners at Stone Point demonstrates our commitment to fostering partnerships that elevate OneDigital's delivery of essential solutions for the market."
Continued Commitment from Onex Partners
Onex Partners, a significant shareholder since 2020, remains enthusiastic about OneDigital's journey. Adam Cobourn, Managing Director at Onex Partners, stated, "Our excitement about OneDigital hasn't waned since our initial investment five years ago. This collaboration represents a bright future for our investors and OneDigital's employee shareholders.”
Strategic Advisors and Upcoming Developments
The advisory team guiding this transaction includes Evercore as the lead financial advisor, supported by Ardea Partners and Barclays, while legal counsel is provided by Kirkland & Ellis along with other reputable firms. This investment move is expected to conclude in the fourth quarter of a specified year, subject to regulatory approvals.
Frequently Asked Questions
What is the purpose of OneDigital's investment?
The investment is aimed at supporting OneDigital's growth through organic expansion and strategic acquisitions across various verticals.
Who are the investors involved in this transaction?
The investors are Stone Point Capital and Canada Pension Plan Investment Board (CPP Investments), which have both taken a majority stake in OneDigital.
How long has OneDigital been in business?
OneDigital has been in operation for 25 years, consistently expanding its offerings to serve clients effectively.
What does Onex's involvement indicate?
Onex Partners maintains a significant minority stake in OneDigital, showcasing a long-term commitment and belief in the company's vision.
What sectors does OneDigital operate in?
OneDigital operates across five core sectors: employee benefits, retirement and wealth management, property and casualty, PEO, and Medicare Advantage.
About The Author
Contact Olivia Taylor privately here. Or send an email with ATTN: Olivia Taylor as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
