Bedford, Texas – Warrantech Corporation, an independent provider of service contracts and after-market warranties, announced the closing of a transaction in which H.I.G. Capital acquired all the outstanding shares of Warrantech in a cash merger for $0.75 per share. H.I.G. partnered with AmTrust Financial Services Inc., a multinational specialty property and casualty holding company, to finance the transaction.
"We are very pleased to have completed this transaction which our Board felt was in the best interest of our stockholders,” said Joel San Antonio, Warrantech CEO. “This transaction will provide Warrantech with a better opportunity to grow its business as a private company and service our customer base. H.I.G. has a proven track record of building value in its portfolio companies by providing strong financial and strategic support.”
Warrantech has already begun its growth by entering into a sales representation agreement with Movil Sales, S.A. de C.V. to market the new automotive programs to auto dealers throughout Mexico. The program, labeled Mas+Garantia, offers a variety of coverage options tailored to fit most consumers. The Mas+Garantia program, a paperless, Internet-based system, allows dealers to view client records and monitor claims instantaneously.