Global investment house Ardian has acquired a minority stake in smartphone insurance broker SFAM.
As part of the transaction, Winch Capital 3, which is managed by Edmond de Rothschild Investment Partners, is selling part of its stake.
The vehicle used to complete the deal has not been revealed, but Ardian is currently investing out of its €4.5bn mid-cap buyout fund, which closed in 2016.
SFAM is a European company that distributes extended warranty products. It designs, sells and manages a line of premium insurance products for mobile phones and devices with extended warranties. Founded in 1999, it employs 1,300 people and expects to generate €500m in gross sales in 2018.
The firm’s investment will ensure that the business can continue its growth and branch out into international markets. It already has operations in France, Belgium, Spain and Switzerland, and is considering expanding into Portugal, the Netherlands and Italy. It will also diversify its insurance offerings and will launch a new online service this year.
Ardian Buyout managing director Yann Bak said, “SFAM’s exponential growth is remarkable and we are looking forward to being able to support the company as it continues along this path. SFAM has a unique position thanks to its great capacity for innovation, its operational excellence, and the quality of its services. We would like to thank Sadri Fegaier and his team for their confidence in Ardian.”
Last month, Ardian has sold InsurTech business RGI after a three-year holding. The firm sold it to fellow private equity firm Corsair Capital, however, no financial terms were disclosed. RGI is a software products and technology services company that serves the insurance industry. Founded in 1987, it covers the entire insurance policy spectrum through its 800 employees. It serves more than 100 clients across the world.
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