US insurance provider Allstate has signed an agreement to acquire InfoArmor, an Arizona-based provider of employee identity protection, for $525m in an all-cash deal.
Headquartered in Scottsdale, InfoArmor serves over a million employees and their family members at more than 1,400 companies.
Established in 2007, the company offers digital identity and financial wellness protection and also advanced threat intelligence and investigative services to help businesses counter online threats.
The acquisition of InfoArmor is expected to give an opportunity for Allstate to grow its employee benefits business – Allstate Benefits, which currently serves more than four million employees.
As of now, Allstate Benefits offers employee benefits that cover accident, critical illness, disability, cancer, vision and dental among others.
Allstate also said that the acquisition is in line with its strategy to provide a comprehensive range of consumer protection products and services.
InfoArmor CEO John Schreiber said: “InfoArmor and Allstate are an unbeatable combination in providing identity protection to employees through voluntary benefit programs.
“Our relationships with top benefit brokers and over 1,000 companies will be enhanced by Allstate’s capabilities and access to the Allstate Benefits distribution network.”
InfoArmor’s employee benefit product dubbed PrivacyArmor is said to be a proactive identity monitoring service that provides alerts to users at the first sign of fraud while restoring an individual’s identity.
The company’s corporate threat intelligence service dubbed as VigilanteATI monitors for emerging threats and shields companies from hacks and cyberattacks.
Allstate chairman, president and CEO Tom Wilson said: “Consumers are increasingly at risk of having their digital identities compromised. Last year there were over 16 million victims of identity fraud, which resulted in over $16 billion of losses.
“With the acquisition of InfoArmor, Allstate will protect more customers from this risk and help rebuild their lives after they have been hacked.”
The acquisition, which is subject to receipt of regulatory approvals and customary closing conditions, is anticipated to be completed later this year.
Earlier this month, Allstate reported its second quarter 2018 revenue at $10.1bn, which is an increase by 2.9% compared to the same period last year.