Private investment firm TPG is reportedly in discussions with Canada’s Onex Corp to acquire warranty-insurance provider ,The Warranty Group, in a deal worth $1.2bn.
The companies are expected to announce the deal in the coming weeks, The Wall Street Journal reported citing undisclosed sources.
The Warranty Group, as a global independent warranty-insurance company, underwrites contracts and deals with claims for a variety of products, including cars, homes and smartphones, among others.
It currently has a workforce of more than 1,900 staff in over 30 countries across the world.
Onex acquired The Warranty Group from Aon Corp in 2006 in a $710m deal.
The Canadian PE firm’s plans to sell the warranty insurer for more than $1bn was originally revealed in September last year, according to a report by Reuters. Onex hired banks such as Morgan Stanley to coordinate the sale process.
If successful, TPG’s reported discussions with Onex will be an addition to the recent private-equity investments in insurance and related firms.
Image: TPG is expected to announce the deal in the coming weeks. Photo courtesy of Mike Johnson.