AmTrust Financial Services Inc. said last week it has agreed to buy Warranty Solutions, owned by Wells Fargo, for $152 million in cash.
The deal is expected to close in the third quarter of 2015 pending regulatory approval, according to a media statement.
“The acquisition of Warranty Solutions provides an outstanding opportunity for our company to expand our successful vehicle extended warranty operation while also adding to our differentiated service and fee business,” Barry Zyskind, AmTrust Financial Service’s CEO, said in the statement.
Warranty Solutions designs, markets, administers and underwrites service contracts for new and used vehicles along with providing other automotive finance and insurance products. It has a national network of about 70 agencies and 1,500 franchised and independent car dealers. Warranty Solutions will keep its name, leadership and team members and will continue to operate in Lakewood, Colo.
AmTrust Financial Services, of New York, offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries.
Finance and insurance product providers say the deal signals further consolidation in the product industry since there was a lot of product overlap between the two companies.