With this transaction, US-based employee benefits provider OneDigital is now valued at $2.65bn


Onex to acquire stake in Georgia-based employee benefits provider. (Credit: Pixabay/Capri23auto.)

Onex, a Toronto, Canada-based investment manager, has agreed to invest $960m to acquire majority stake in OneDigital from New Mountain Capital.

With the investment from Onex, OneDigital is now valued at $2.65bn. After the deal’s closure, Onex will own nearly 83% of the OneDigital.

Headquartered in Atlanta, Georgia, OneDigital was established in 2000 and offers strategic advisory services focused on delivering health, retirement/wealth and HR solutions for employers of all sizes.

The company has more than 2,000 employees working from over 100 offices across the US, and catering to the needs of over 50,000 employers in the US.

Onex managing director Todd Clegg said: “OneDigital has established a leading national insurance brokerage and a customer- and employee-centric culture which drives business performance.

“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 investment in OneDigital, its leadership team and national footprint of experienced advisors, as well as its best-in-class operating platform, lays the groundwork to build together for years to come.

“There is no other firm in the industry that combines decades of cohesive management experience, an expansive and adaptive infrastructure, and a culture that attracts teams for the long term. OneDigital’s customers will benefit from that expertise and commitment.”

Deal expected to complete by end of 2020

Subject to customary closing conditions and regulatory approvals, the deal is expected to close by the end of this year.

OneDigital president and CEO Adam Bruckman said: “Aligning with an investor group like Onex represents a strategic investment for the future of our firm and supports our ability to deliver exceptional experiences for our customers.

“We remain committed to serving as a strategic advisor to ease the immediate burden companies are facing today and walk alongside them as they rebuild for the future. This investment means we can offer more specialized guidance and personalized service for years to come.