New York – AmTrust Financial Services, through its subsidiary
AMT Warranty, has acquired the remaining 73 percent ownership interest in
Warrantech, bringing its total ownership interest to 100 percent.
through the second quarter of 2010, AmTrust has generated more than
$224 million in written premium with strong underwriting profits as a result of
its original ownership interest in Warrantech, AmTrust said in a statement.
AmTrust Financial Services president/CEO Barry Zyskind said, “By bringing together these two robust
warranty administration platforms, we expect to significantly increase our fee
income and benefit from enhanced scale and technology efficiencies while
further strengthening AmTrust’s market presence and premium opportunities in
the warranty space. We believe the talent and experience of the newly combined
platform will provide additional momentum as we continue to deliver strong
value for our clients and shareholders.”
The transaction was funded with a net $7.5 million in cash and includes an
earn-out payment to the sellers of a minimum of $2 million with a maximum of $3
million based on AMT Warranty’s EBITDA. Additionally, immediately following the
transaction, the company’s existing $24.1 million note receivable from Warrantech
was transferred to AMT Warranty.