Photograph by Joe Raedle — Getty Images

From a group of shareholders that include Bain Capital.

November 29, 2016

Property and casualty insurer Allstate said on Monday it would buy SquareTrade Holding for about $1.4 billion from a group of shareholders that include Bain Capital.

SquareTrade, founded in 1999 by Ahmed Khaishgi and Steve Abernethy, offers extended warranty plans for electronic gadgets.

San Francisco-headquartered SquareTrade’s customers include major retailers such as Amazon amzn , Costco Wholesale cost , Sam’s Club, Target tgt , Staples spls , Office Depot odp and Toys ‘R’ Us.

The deal, which will help AllState expand into new markets and products, is expected to close in January.


Allstate all , which expects the acquisition to dilute its earnings per share for three years, intends to fund the deal with cash and debt.

Ardea Partners, Lazard and Willkie Farr & Gallagher advised Allstate, while Financial Technology Partners and Ropes & Gray advised SquareTrade.


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