(Reuters) - Property and casualty insurer Allstate Corp (ALL.N) said on Monday it would buy SquareTrade Holding Co Inc for about $1.4 billion from a group of shareholders that include Bain Capital.
SquareTrade, founded in 1999 by Ahmed Khaishgi and Steve Abernethy, offers extended warranty plans for electronic gadgets.
San Francisco-headquartered SquareTrade’s customers include major retailers such as Amazon.com Inc (AMZN.O), Costco Wholesale Corp (COST.O), Sam’s Club, Target Corp (TGT.N), Staples Inc SPLS.O, Office Depot Inc (ODP.O) and Toys ‘R’ Us Inc.
The deal, which will help AllState expand into new markets and products, is expected to close in January.
Allstate, which expects the acquisition to dilute its earnings per share for three years, intends to fund the deal with cash and debt.
Ardea Partners, Lazard Ltd and Willkie Farr & Gallagher advised Allstate, while Financial Technology Partners and Ropes & Gray advised SquareTrade.
Reporting by Sruthi Shankar in Bengaluru; Editing by Maju Samuel