Transactions

Focused on the crossroads of insurance,
healthcare services, investment services,
and the technologies that serve those sectors.
Transaction Value: $2,650,000,000
OneDigital
A portfolio company of
New Mountain Capital
will be recapitalized by
Financial advisor to New Mountain Capital October 2020
Onex to Make a Majority Investment in OneDigital
Industry: Insurance, Healthcare Services, Investment Services, Technology
Type: Sell-Side M&A, Capital Raise

Onex Corporation (“Onex”) (TSX: ONEX) and its affiliated funds (the “Onex Group”) announced it has agreed to make a majority investment in OneDigital, a leading U.S. provider of employee benefits insurance brokerage and retirement consulting services. New Mountain Capital (“New Mountain”), the former majority shareholder, and OneDigital employees will roll a significant portion of their existing investments into the transaction. Founded in 2000, OneDigital is headquartered in Atlanta, Georgia and has more than 2,000 employees in over 100 offices across the United States.

“OneDigital has established a leading national insurance brokerage and a customer- and employee-centric culture which drives business performance,” said Todd Clegg, an Onex Managing Director. “The company has a very impressive management team led by Adam Bruckman and is well positioned to grow both organically and by continuing its track record of successful acquisitions. We are thrilled to partner with Adam, the rest of the OneDigital team and New Mountain.”

“Our world-class employees and investment in holistic health, wealth and HR solutions have allowed us to continually grow our market position by providing our clients with a level of value that is unparalleled in the market,” commented Mr. Bruckman, President and Chief Executive Officer of OneDigital. “We look forward to our next phase of growth in partnership with Onex and New Mountain.”

“New Mountain is committed to OneDigital’s long-term growth and expansion in the insurance brokerage and retirement sectors. In Onex, we found a strong partner with deep industry expertise and an aligned long-term investment philosophy,” said Robert Mulcare, Managing Director of New Mountain.

The transaction values OneDigital at $2.65 billion. The new equity investment of approximately $960 million will be made by the Onex Group, including Onex Partners V. Upon closing, the Onex Group and employees of OneDigital will own approximately 83% of the company. The transaction is anticipated to close by the end of 2020 subject to customary conditions and regulatory approvals.