CPE News (3.6.2024) – TA Associates (TA), through a Luxembourg investment vehicle, in partnership with Martin Papillon, CEO of AGA, has acquired AGA Benefit Solutions (AGA). [Premium Contents, please Log In or Subscribe]
Novacap, which invested AGA in 2020 out of its inaugural financial services fund, has exited AGA.
AGA’s management team led by Papillon will remain in place.
Montréal based AGA Benefit Solutions is a Canadian leader in the development and administration of customized group insurance plans and group retirement plans. Founded more than 45 years ago, AGA Benefit Solutions serves today more than 2,700 clients, supports over 200,000 members with the management and adjudication of their claims, and boasts over a $1 billion in premiums and group retirement assets under management.
photo credit: AGA
News Release
AGA Benefit Solutions Welcomes Investment from TA to Support Platform Growth
AGA Benefit Solutions (AGA), a leading developer and administrator of customized group insurance and retirement plans across Canada, today announced that it has received a significant growth investment from TA Associates (TA), a leading global private equity firm. TA has partnered with AGA’s management team who will remain in place and continue to be major shareholders of AGA. Novacap, a leading North American private equity firm which invested in the business in 2020 out of its inaugural financial services fund, will transition its ownership position as part of the transaction.
Working in partnership with insurance carriers and plan sponsors, AGA provides brokerage and advisory services, in addition to third-party-administration (TPA) and third-party-payor (TPP) services. Today, AGA has six locations across Canada and over 300 employees, serving more than 2,700 customers, which encompass over 200,000 plan members and more than $1 billion in insurance premiums and group retirement assets. Since 2020, the Company has completed five strategic acquisitions, growing from a regional to a national leader, and plans to continue expanding the business organically and through M&A moving forward.
“We remain committed to delighting our customers with market leading benefits solutions and service, while continuing our investment in technological tools and process automation to make the AGA experience best-in-class. We plan to pursue our strategy of acquiring and integrating group insurance firms across Canada, with the aim of making AGA the Canadian leader in employee benefits,” asserts Martin Papillon, CEO of AGA.
“AGA has established itself as a leading provider of group benefits & retirement solutions in the Canadian marketplace and delivers a compelling value proposition to its client partners,” said Clara Jackson, Director at TA. “We are excited to support Martin, Chantal and the rest of AGA’s team in their continued expansion and next chapter of growth.” “We look forward to working closely with the AGA team in driving organic growth, leveraging the Company’s M&A platform and supporting its goal of maintaining best-of-breed solutions,” added Todd Crockett, Managing Director at TA.
“We are extremely proud of the partnership achieved with AGA over the last 4 years and their transformation into a leading national provider of group benefits solutions. We wish them continued success over their next chapter of expansion,” said Marcel Larochelle, Managing Partner at Novacap.
Financial terms of the transaction were not disclosed.
About AGA Benefit Solutions
AGA Benefit Solutions is a Canadian leader in the development and administration of customized group insurance plans and group retirement plans. Founded more than 45 years ago, AGA Benefit Solutions serves today more than 2,700 clients, supports over 200,000 members with the management and adjudication of their claims, and boasts over a $1 billion in premiums and group retirement assets under management. To find out more, visit www.aga.ca.
About TA Associates
TA is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries—technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.
About Novacap
Founded in 1981, Novacap is a leading North American private equity firm with over C$8B of AUM that has invested in more than 100 platform companies and completed more than 150 add-on acquisitions. Applying its sector-focused approach since 2007 in Industries, TMT, Financial Services, and Digital Infrastructure, Novacap’s deep domain expertise can accelerate company growth and create long-term value. With experienced, dedicated investment and operations teams as well as substantial capital, Novacap has the resources and knowledge that help build world-class businesses. Novacap has offices in Montreal, Toronto, and New York.
For more information, please visit www.novacap.ca.