Investment firm New Mountain is acquiring a majority stake in One Digital Health and Benefits from Fidelity National Financial Ventures (FNFV) in an all-cash transaction worth $560 million. New Mountain aims to provide strategic guidance and industry expertise to help drive OneDigital’s continued growth.
OneDigital is the nation’s largest company focuses exclusively on employee benefits, combining people and technology to deliver the new generation of health and benefits.
“When seeking the right partner to support OneDigital’s future, we wanted a group that would be a great cultural fit and have proven experience in both healthcare and brokerage distribution,” Adam Bruckman, president and CEO of OneDigital, said in a statement. “We have a tremendous opportunity in front of us, and are confident that New Mountain Capital is the ideal partner to help us execute our strategic plan and achieve long-term business growth with excellent financial returns.”
After repayment of debt, payout to option holders and a minority equity investor and other transaction related payments, FNFV expects to receive about $330 million in cash from the sale. Closing is contingent on HSR clearance and is expected in the second quarter of 2017.