NEW DELHI: GTCR, a leading private equity firm, announced today that it has signed a definitive agreement to acquire TRANZACT, a leading direct-to-consumer insurance services company, in a corporate carve-out from WTW PLC, a leading global advisory, broking and solutions company. GTCR is investing in TRANZACT alongside Recognize, a technology services investment platform. Andy Nelson, President of TRANZACT, and the existing management team will continue to lead the business and partner with GTCR and Recognize. The transaction values TRANZACT at $632.4 million.

Headquartered in Fort Lee, NJ, TRANZACT provides a full suite of capabilities across marketing and demand generation, sales execution, post-sales engagement and technology solutions. The business currently serves as the platform of choice for several large insurance carrier partners and is the agent of record for over one million active insurance policies across Medicare Advantage, Medicare Supplement and Life & Supplemental insurance markets.

GTCR and Recognize's investment will build on TRANZACT's strong performance and target areas of growth amongst its insurance carrier partners. Together, GTCR, Recognize and TRANZACT will implement a strategy to drive continued innovation, with additional capital available to help fund the expansion and enhancement of its services across this unique customer acquisition platform. As an independent company, TRANZACT will continue to focus on delivering best in class, reliable services and solutions across the insurance industry. 

"We are excited to partner with Recognize, Andy and the talented team at TRANZACT and continue to build on their innovative platform," said David Donnini, Managing Director and Head of Business & Consumer Services at GTCR. "We have known Andy for many years and have always admired TRANZACT and their truly unique, data-driven marketing model for the insurance industry. Over the years, TRANZACT has developed deep, trusted partnerships with some of the industry's most recognized insurers and, along with its strong brand, has positioned itself well to continue to gain share as we look to expand and enhance its offering. Importantly, they have also established a reputation for exceptional service and quality to the end consumers."

"As the insurance marketplace evolves, TRANZACT will continue to play a critical role in helping carriers deliver quality service to their customers and better react to their evolving needs," said David Wasserman, Co-Founder and Managing Partner of Recognize. "We are thrilled with the opportunity to partner with GTCR, and alongside Andy and this management team, which we have known for many years. Their ongoing leadership at TRANZACT will be invaluable as we look to further develop the company's capabilities, particularly their unique and specialized services offerings for the insurance markets."

Mr. Nelson, President of TRANZACT, will become CEO of the standalone business at closing, alongside the rest of the management team who will continue in their current roles. Mr. Nelson has been a senior executive with TRANZACT since 2003, President since 2016, and has spent his entire career in direct-to-consumer marketing and building deep expertise and relationships in the insurance sector.

GTCR has a longstanding relationship with Mr. Nelson, who currently serves as an independent director on the Board of Consumer Cellular, another portfolio company of the firm. Likewise, the Recognize leadership team was part of a group that had previously invested in TRANZACT before it was sold to WTW in 2019 and worked with Mr. Nelson closely during that time.

"Today marks an important milestone in TRANZACT's journey and we are excited about our future together with our new partners at GTCR and Recognize," said Mr. Nelson. "Over the last two decades, the TRANZACT team has worked tirelessly to build a leading insurance marketplace platform, known for quality service and innovative solutions. We are confident that in becoming an independent company, we will be able to continue to meet the needs of our insurance carrier partners and the consumers and drive growth across our business. We are incredibly grateful for the team at WTW for their support of our strategy and their partnership over the past five years."

"TRANZACT is a high-quality business, a leading provider in an area of the insurance market that we have followed for the last several years and know well," said Tom Ehrhart, Managing Director at GTCR. "Along with our partners at Recognize, we believe that TRANZACT's suite of services are well positioned for continued growth across the insurance landscape. 

Andy and his team are dynamic leaders, and we believe they are the right team to bring this company forward in a new chapter of independent growth."
The transaction is expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.