SquareTrade, the independent consumer warranty provider, has secured a USD238 million growth equity investment led by affiliates of Bain Capital. Other financial terms of the private transaction have not been disclosed.
“We are very excited to partner with SquareTrade, which is disrupting a USD20+ billion global industry with its innovative approach to warranties.” says Mike Krupka, a Managing Director of Bain Capital Ventures.
“We were attracted by the incredibly high satisfaction levels among consumers and retailers, along with the vision of co-founders Steve Abernethy and Ahmed Khaishgi, and their ability to execute the plan to build the first great brand in the space,” says Phil Loughlin (pictured), a Managing Director of Bain Capital Partners. The investment is being made jointly by the firm’s private equity and venture capital affiliates.
Based in San Francisco, SquareTrade offers a branded warranty focused on delivering great value and no-hassle service for consumers. SquareTrade’s commitment to delivering an exceptional customer experience has yielded excellent consumer ratings that are easily researched online. Customers can buy warranties directly from www.squaretrade.com, as well as through more than 30 retailers and marketplaces.
The investment caps a successful 2011 for SquareTrade, which saw sales nearly triple year over year, and the addition of some of the largest national and global retailers who are offering the company’s warranty services to their customers. SquareTrade said it expects triple-digit revenue growth again in 2012.
“SquareTrade has been profitable and growing rapidly for several years, and we have been approached by many top investment firms. We concluded that Bain Capital is the ideal partner to help us continue growing SquareTrade into the premier brand in the category,” says Abernethy, who serves as CEO. “We have a long term view of investing in service, technology and brand awareness to make SquareTrade uniquely high value, easy to research and easy to use. Bain Capital shares the vision, and has the resources and consumer service and retail experience to help us realise our potential.”
SquareTrade’s prior investors include Weston Presidio Capital and JP Morgan Partners. Financial Technology Partners LP served as exclusive financial and strategic advisors to SquareTrade.
