TRANZACT offers direct-to-consumer sales and marketing solutions for major insurance carriers in the US
Willis Towers Watson has wrapped up its previously announced $1.2bn (£990m) acquisition of direct-to-consumer health care organisation TRANZACT from the Clayton, Dubilier & Rice (CD&R) fund and others.
The deal, which was announced in late May, was closed after the satisfaction of customary closing conditions and receipt of regulatory approval.
TRANZACT, which links individuals to US insurance carriers, will now be an integral part of the Benefits Delivery and Administration (BDA) business of Willis Towers Watson. BDA is engaged in developing and delivering administrative solutions for employers, employees and retirees.
The TRANZACT brand will be continued to be used in the market, said the global insurance brokerage firm.
Willis Towers Watson took up the acquisition to accelerate its direct-to-consumer strategy and ability to target the medicare market of approximately 50 million lives.
As per the terms of the acquisition, the global insurance brokerage firm offered a payment of $1.2bn to the health care firm in addition to up to $200m in the form of potential earn-out in 2021 based on the achievement of certain financial targets.
Products offered by TRANZACT
The health care organisation markets a range of products such as Medicare Supplement, Medicare Advantage, and Prescription Drug Plan, along with various ancillary products like dental, vision, life and indemnity.
TRANZACT employs nearly 1,300 individuals, which includes 850 licensed agents, who match customers with the insurance policies suit their requirement.
The company is said to leverage digital, data and direct marketing solutions to provide qualified leads, fully-provisioned sales and customer management systems to brands looking to acquire and manage large numbers of consumers.
Willis Towers Watson BDA segment head Gene Wickes said: “We are happy to announce that Willis Towers Watson has closed its acquisition of TRANZACT.
“We are excited to welcome the TRANZACT team into Willis Towers Watson and work together to further their capabilities and proven success in the direct-to-consumer U.S. health care market — a significant growth opportunity for us going forward.”