Onex Partners V to acquire majority of OneDigital from New Mountain Capital

CPE News (10/8/2020) – Onex Corporation (TSX: ONEX) and Onex Partners V have agreed to make a majority investment in OneDigital Health and Benefits/Digital Insurance. New Mountain Capital, LLC, the former majority shareholder, and OneDigital employees will roll a significant portion of their existing investments into the transaction.

The transaction values OneDigital at US $2.65 billion.

The new equity investment of approximately US $960 million will be made by the Onex Group, including Onex Partners V. Upon closing, the Onex Group and employees of OneDigital will own approximately 83% of the company.

The transaction is anticipated to close by the end of 2020 subject to customary conditions and regulatory approvals.

Founded in 2000, Atlanta, Georgia based OneDigital is a leading U.S. provider of employee benefits insurance brokerage and retirement consulting services. The company has more than 2,000 employees in over 100 offices across the United States.

In June 2017, New Mountain Capital acquired the majority ownership position in OneDigital from Fidelity National Financial Ventures for reportedly US $560 million in an all-cash transaction.

OneDigital

News Release

– Onex to Make a Majority Investment in OneDigital –
– One of the Largest Employee Benefits and Retirement Advisors –

Toronto, October 8, 2020 – Onex Corporation (“Onex”) (TSX: ONEX) and its affiliated funds (the “Onex Group”) today announced it has agreed to make a majority investment in OneDigital, a leading U.S. provider of employee benefits insurance brokerage and retirement consulting services. New Mountain Capital (“New Mountain”), the former majority shareholder, and OneDigital employees will roll a significant portion of their existing investments into the transaction.

Founded in 2000, OneDigital is headquartered in Atlanta, Georgia and has more than 2,000 employees in over 100 offices across the United States.

“OneDigital has established a leading national insurance brokerage and a customer- and employee-centric culture which drives business performance,” said Todd Clegg, an Onex Managing Director. “The company has a very impressive management team led by Adam Bruckman and is well positioned to grow both organically and by continuing its track record of successful acquisitions. We are thrilled to partner with Adam, the rest of the OneDigital team and New Mountain.”

“Our world-class employees and investment in holistic health, wealth and HR solutions have allowed us to continually grow our market position by providing our clients with a level of value that is unparalleled in the market,” commented Mr. Bruckman, President and Chief Executive Officer of OneDigital. “We look forward to our next phase of growth in partnership with Onex and New Mountain.”

“New Mountain is committed to OneDigital’s long-term growth and expansion in the insurance brokerage and retirement sectors. In Onex, we found a strong partner with deep industry expertise and an aligned long-term investment philosophy,” said Robert Mulcare, Managing Director of New Mountain.

The transaction values OneDigital at $2.65 billion. The new equity investment of approximately $960 million will be made by the Onex Group, including Onex Partners V. Upon closing, the Onex Group and employees of OneDigital will own approximately 83% of the company. The transaction is anticipated to close by the end of 2020 subject to customary conditions and regulatory approvals.

About Onex
Founded in 1984, Onex invests and manages capital on behalf of its shareholders, institutional investors and high net worth clients from around the world. Onex’ platforms include: Onex Partners, private equity funds focused on larger opportunities in North America and Europe; ONCAP, private equity funds focused on middle market and smaller opportunities in North America; Onex Credit, which manages primarily non-investment grade debt through collateralized loan obligations, senior loan strategies and other private credit strategies; and Gluskin Sheff’s wealth management services including its actively managed public equity and public credit funds. In total, Onex has approximately $35.6 billion of assets under management, of which approximately $6.6 billion is its own shareholder capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.

The Onex Partners and ONCAP businesses have assets of $45 billion, generate annual revenues of $25 billion and employ approximately 165,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedar.com.

About OneDigital
OneDigital is the leading strategic advisory firm in the U.S. and has consistently led from the front as a workplace ally for 20 years. OneDigital’s unique ability to converge health, wealth and human resources into a hub of services and business guidance has empowered companies to create workplaces that attract and retain talent while fueling innovation and company growth. As employee healthcare, wellness and workplace benefits continue to shift, companies of all sizes have relied on OneDigital’s exceptional advisory teams for counsel and its adjacent services, including employee benefits, holistic HR services, retirement and wealth management, employee wellbeing and pharmacy consulting. Headquartered in Atlanta, OneDigital’s more than 100 offices and 2,000 business strategists serve the needs of over 50,000 employers across the United States.

OneDigital has been named to the Inc. 5000 List of America’s fastest-growing companies every year since 2007, one of only 12 companies to do so. Currently listed as 18th on Business Insurance’s list of 100 Largest U.S. Brokers, OneDigital’s deep analytic abilities and experienced advisors deliver insights that reduce business risk and improve plan design and performance. For more information, visit www.onedigital.com.

For Further Information
Claire Glossop Irani
Director, Client & Product Solutions
Tel: 416.362.7711