New York — Assurant, a leading underwriter and marketer of extended-service plans, has completed its previously announced acquisition of Signal Holdings, a provider of wireless handset protection programs and repair services.
Assurant bought the business for $250 million in cash from Signal Holdings management and Trident II, a private equity fund managed by Stone Point Capital.
Signal Holdings, a privately held company headquartered in Wayne, Pa., generates annual revenues of approximately $330 million by servicing extended warranties for 4.2 million wireless subscribers.
The transaction, which was completed yesterday, expands the client portfolio and servicing capabilities of Assurant’s Solutions unit in the wireless service contract market, and is expected to add approximately $150 million to the division’s revenue.
Assurant Solutions and Signal Holdings have been business partners since 2001, with Assurant providing underwriting and marketing support and Signal providing the servicing capability to the companies’ shared client base.
In a statement, Assurant president/CEO Robert Pollock said: “We’re very pleased to have completed this acquisition as we seek to increase our market position in this growing segment of the service contract market. It also demonstrates our focus on targeting opportunities which we believe offer good long-term growth potential for our shareholders.”