Onex to acquire majority stake in US advisory firm OneDigital for $960m

Canadian investment manager Onex Corporation and its affiliated funds (the Onex Group) has agreed to acquire a majority stake in OneDigital, a US provider of employee benefits insurance brokerage and retirement consulting services, for about $960 million.

The deal values the Atlanta-based employee benefits and retirement advisor at $2.65 billion.

New Mountain Capital and OneDigital employees are selling a considerable portion of their existing investments as part of the deal.

Established in 2000, the Atlanta-based OneDigital has over 2,000 employees across 100 offices in the US.

Todd Clegg – a managing director at Onex said: “OneDigital has established a leading national insurance brokerage and a customer- and employee-centric culture which drives business performance.

“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.”

The equity investment will be made by the Onex Group, which includes Onex Partners V.

Upon completion of the deal, the Onex Group and OneDigital’s employees will own nearly 83% of the employee benefits and retirement advisor.

Adam Bruckman – President and CEO of OneDigital said: “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.

“We look forward to our next phase of growth in partnership with Onex and New Mountain.”

The deal, which is subject to customary conditions and regulatory approvals, is anticipated to close by the end of this year.