Clayton, Dubilier & Rice has completed the sale of TRANZACT, a provider of direct-to-consumer sales and marketing solutions for individual Medicare and Life insurance policies across the US, to Willis Towers Watson. The total purchase price was USD1.3 billion.
Under CD&R’s ownership, TRANZACT capitalised on rapid growth in its core Medicare markets. TRANZACT’s success was supported by the company’s strong leadership team, entrepreneurial culture, and significant investments in its portfolio of differentiated technology and analytics capabilities.
As a leader in direct-to-consumer insurance sales, TRANZACT today employs approximately 1,300 individuals, including 850 licensed agents. The company integrates expertise in technology, marketing, lead generation, and sales execution to connect individual consumers to leading U.S. insurance carriers and help those consumers identify the right insurance option for their needs.
“The TRANZACT management team under the leadership of David Graf built a world-class business with an incredible culture and a deep commitment to serving its customers with innovative solutions,” says David Wasserman, CD&R Partner. “We are thrilled to have worked with this team and see a very bright future for TRANZACT as part of Willis Towers Watson.”
“TRANZACT is a textbook example of an innovative service business, underpinned by cutting edge technology and analytics, partnering with CD&R to accelerate growth,” says Stephen Shapiro, Partner at CD&R. “The result is an outstanding outcome for CD&R’s investors, and we believe integration into the Willis Towers Watson platform will open up significant new opportunities for TRANZACT’s future growth.”
CD&R Operating Partner Russ Fradin served as Chairman of the company during the Firm’s ownership period, which began in 2016. Over the past four years, CD&R funds have invested USD2.7 billion in tech-enabled businesses, or approximately 40 per cent of the funds’ total capital invested in that period.
