Fidelity National Financial Ventures (“FNFV”) has signed a definitive agreement to sell One Digital Health and Benefits for $560 million in an all-cash transaction. OneDigital, the nation’s largest company focuses exclusively on employee benefits, combines people and technology to deliver the new generation of health and benefits. OneDigital offers employers a sophisticated combination of strategic advisory services, analytics, compliance support, HR capital management tools and comprehensive insurance offerings.
New Mountain, a leading growth-oriented investment firm has agreed to acquire a majority ownership position from Fidelity National Financial Ventures (“FNFV”) and will provide strategic guidance and industry expertise to help drive OneDigital’s continued growth.
Adam Bruckman, president and CEO of OneDigital, said, “When seeking the right partner to support OneDigital’s future, we wanted a group that would be a great cultural fit and have proven experience in both healthcare and brokerage distribution. We have a tremendous opportunity in front of us, and are confident that New Mountain Capital is the ideal partner to help us execute our strategic plan and achieve long-term business growth with excellent financial returns.”
“We believe OneDigital is a truly unique platform within the insurance distribution sector, and have been impressed with the company’s exceptional culture and talent, best-in-class technology and systems, and proven leadership team,” said Robert Mulcare of New Mountain Capital. “OneDigital has a successful track record of delivering healthcare solutions and thought leadership to its customers, which is crucial to its success. The company has consistently grown organically and through acquisitions, and New Mountain is excited to help management execute on a strategy that has made it one of the best performing brokers in the U.S.”
After repayment of debt, payout to option holders and a minority equity investor and other transaction related payments, FNFV expects to receive about $330 million in cash from the sale. Closing is contingent on HSR clearance and is expected in the second quarter of 2017.