WTW to sell TRANZACT to GTCR & Recognize in $632.4m transaction

WTW, the global insurance broker, has entered into a definitive agreement to sell its TRANZACT direct-to-consumer insurance distribution business to GTCR, a private equity firm, and Recognize, a technology services investment platform, for $632.4 million, subject to certain adjustments.

According to the announcement, the sale is expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.

In addition, WTW anticipates that the transaction will result in non-cash pre-tax losses and related impairment charges estimated to sit between $1.6 billion and $2.1 billion, which will be recorded in the third quarter of 2024 and then updated until the closing date of the transaction.

It has been confirmed that both BofA Securities and Lazard are serving as financial advisors to WTW in connection with the transaction.

While Weil, Gotshal & Manges LLP is serving as the brokers legal advisor.

Carl Hess, WTW’s Chief Executive Officer, commented on the sale: “This divestiture sharpens our strategic focus on our core business-to-business and business-to-business-to-consumer offerings and simplifies our portfolio.”

He continued: “With the sale of TRANZACT, we are exiting this direct-to-consumer market and accelerating our progress toward our long-term free cash flow margin goals. Under the ownership of GTCR and Recognize, we are confident TRANZACT will continue to flourish and deliver the exceptional consumer experience that has enabled its consistent performance.”

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