US-based claims management and technology-enabled business solutions provider Sedgwick has obtained a $1bn equity investment from private equity company Altas Partners.
The transaction values Sedgwick at around $13.2bn, up from the $6.7bn valuation when Carlyle first invested in Sedgwick in 2018.
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Current investors, including funds managed by Carlyle and Stone Point Capital, will retain their stakes and continue to make new investments in the company.
Carlyle will retain its controlling position in partnership with the investor group and the Sedgwick management team.
Sedgwick offers a wide array of services tailored to clients’ needs across various sectors including casualty, property, marine, benefits and brand protection.
The company says it is a contact point for millions worldwide facing disruptive events, managing over eight million claims in 2023 and overseeing claim payments exceeding $33bn.
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By GlobalDataFollowing the investment, Sedgwick will continue operating as an independent, private entity, focusing on claims handling and the integration of data science and technology.
Sedgwick CEO Mike Arbour said: “This new partnership with Altas, and our current stakeholders, brings together a strategic vision that builds our global footprint, expands comprehensive service capabilities and enhances our business for decades to come.
“Altas has a history of actively supporting companies in its portfolio, and they are very knowledgeable in the challenges our clients face in today’s competitive business environment.”
Altas partner Paul Emery said: “Sedgwick is an exceptional company, led by a terrific team, that we have coveted for many years. These opportunities are hard to come by, and a business like Sedgwick fits squarely within our framework.
“We are excited to work in close partnership with Mike Arbour and team to support the many value creation opportunities that lie ahead.”
The closure of this transaction is anticipated in the fourth quarter of 2024, subject to the fulfilment of customary closing conditions.
In November 2023, Sedgwick appointed Neil Gibson as its UK CEO.
