White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that it has signed a definitive agreement to sell a controlling interest in Bamboo, a data-enabled insurance distribution platform providing homeowners' insurance and related products to the residential property market in California and Texas, to funds advised by CVC Capital Partners. The transaction values Bamboo at $1.75 billion.
White Mountains, based in Hamilton, Bermuda, said it expects the transaction will result in a gain of approximately $310 to its book value per share and net cash proceeds of approximately $840 million. White Mountains will retain an approximately 15% fully-diluted equity stake in Bamboo post-closing, valued at $250 million based on the transaction.
"It has been our privilege to partner with Bamboo. Its rapid growth is a testament to the value and innovation it is bringing to the homeowners' insurance market," said White Mountains CEO Manning Rountree.
"This transaction is a win-win for both White Mountains shareholders and Bamboo management and employees. We want to thank John and the entire Bamboo team for all of their hard work, and we look forward to continued partnership with them and CVC," added White Mountains CEO Liam Caffrey.
WTM shares scaled higher $177.68, or 10.7%, to $1,844.25.
