Allstate to buy Arizona company for $525M
Allstate is buying Arizona-based InfoArmor Inc., a provider of employee identity protection, for $525 million in cash.
InfoArmor Inc. provides protection to more than 1 million employees and their family members at more than 1,400 firms, including more than 100 of the Fortune 500 companies. The deal with the privately held company, headquartered in Scottsdale, Arizona, is expected to close later this year.
InfoArmor is an 11-year-old company that sells its products through brokers dealing with employee benefits arms of corporations.
"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," said Allstate President Tom Wilson.
"InfoArmor is the go-to identity protection company in the employee benefits market, providing an opportunity to expand the Allstate Benefits business now serving over 4 million employees," said the leader at Allstate, based in Northbrook.
"InfoArmor and Allstate are an unbeatable combination in providing identity protection to employees through voluntary benefit programs," said InfoArmor CEO John Schreiber. "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."
The transaction is subject to regulatory approvals and customary closing conditions.
Wall Street approved of the deal. Allstate shares were up 88 cents per share, or 0.88 percent, to $100.42 at the end of the day Monday.