ONEX Corporation - Chairman & CEO, Gerry Schwartz
Chairman & CEO, Gerry Schwartz
Source: Bloomberg
  • Private equity firm Onex (ONEX) is set to acquire a majority stake in US-based provider of employee benefits and consulting services OneDigital
  • The interest, worth roughly C$1.27 billion, will be acquired from New Mountain Capital and values OneDigital at approximately $3.51 billion
  • Upon completion of the transaction, Onex and employees of OneDigital will hold a collective 83 per cent stake in the company
  • The acquisition comes ahead of Onex’s third-quarter results, which will be released on November 13
  • Onex (ONEX) is currently up 1.3 per cent and is trading at $61.34 per share

Private equity firm Onex (ONEX) is set to acquire a majority stake in OneDigital, a US-based provider of employee benefits and consulting services.

In partnership with its affiliates, Onex is expected to purchase an equity interest worth C$1.27 billion from New Mountain Capital, a New York-based investment manager that previously held the majority stake.

The deal values OneDigital at approximately $3.51 billion and, once complete, will result in Onex and employees of OneDigital holding a collective 83 per cent stake in the company.

Todd Clegg, a Managing Director of Onex, said OneDigital is well-placed to grow both organically and through its track record of successful acquisitions.

“OneDigital has established a leading national insurance brokerage and a customer- and employee-centric culture which drives business performance,” he added.

Founded in 2000 and headquartered in Atlanta, Georgia, OneDigital has more than 2,000 employees across 100 offices in the United States, and has built a reputation as a market-leading provider of health, retirement, wealth and human resources services for broad variety of businesses.

Adam Bruckman, President and CEO of OneDigital, said he looks forward to the company’s next phase of growth.

“Our world-class employees and investment in holistic health, wealth and HR solutions have allowed us to continually grow our market position by providing our clients with a level of value that is unparalleled in the market,” he added.

While it remains subject to regulatory approval, the transaction is expected to close by the end of this year.

Onex’s acquisition comes ahead of its third-quarter results, which are anticipated to be released on November 13, 2020.

Onex (ONEX) is currently up 1.3 per cent and is trading at $61.34 per share at 10:11am EDT.

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