(Adds deal details, SquareTrade background)
Nov 28 Property and casualty insurer Allstate
Corp said on Monday it would buy SquareTrade Holding Co
Inc for about $1.4 billion from a group of shareholders that
include Bain Capital.
SquareTrade, founded in 1999 by Ahmed Khaishgi and Steve
Abernethy, offers extended warranty plans for electronic
San Francisco-headquartered SquareTrade's customers include
major retailers such as Amazon.com Inc, Costco
Wholesale Corp, Sam's Club, Target Corp,
Staples Inc, Office Depot Inc and Toys 'R' Us
The deal, which will help AllState expand into new markets
and products, is expected to close in January.
Allstate, which expects the acquisition to dilute its
earnings per share for three years, intends to fund the deal
with cash and debt.
Ardea Partners, Lazard Ltd and Willkie Farr & Gallagher
advised Allstate, while Financial Technology Partners and Ropes
& Gray advised SquareTrade.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Maju