Meet the Atlanta firm that just got a $2.3 billion investment
OneDigital, an Atlanta-based insurance and financial services company, has received a multi-billion dollar investment to fuel its expansion, the company announced Friday. The deal values the company at $7.2 billion.
Its new investors are Connecticut-based Stone Point Capital and the Canada Pension Plan Investment Board, which invests the contributions collected by Canada’s government-sponsored retirement income program.
The two are investing a combined $2.3 billion in OneDigital for a majority stake in the company, according to OneDigital’s CEO and co-founder Adam Bruckman. The deal is expected to close by the end of the year, pending regulatory approval.
Bruckman and his co-founder Mike Sullivan started the company in 2000 to help other companies manage employee benefits, insurance and human resources. In the past five years it has also added a financial services arm that manages retirement plans and 401(k)s, with $143 billion in assets under management.
A quarter of a century since launching, Bruckman and Sullivan are still at the helm, which Bruckman said “has been a real pleasure and a blessing.”
“We’re still both running hard and we could not be more excited about the next chapter here,” he told The Atlanta Journal-Constitution.
That next chapter, fueled by the latest investment, includes continuing acquisitions of other employee benefits, insurance and financial services firms as well as expanding the company’s team.
Stone Point and CPP Investments acquired the majority stake from existing investors, a “common approach in private equity,” Bruckman explained.
“They’ll come in, they’ll stay in for some period of time,” he said. “Then we welcome some new investors that help us.”
In the five years since its last round of investment, OneDigital has more than doubled its headcount and tripled its revenue, Bruckman said. Last year, the company expanded to Canada.
OneDigital now has more than 5,000 employees, about 10% of whom work out of the Atlanta headquarters, and close to 200 offices around the country, according to Bruckman.
“I feel like we’re sort of at a very interesting inflection point because we’ve gotten into … some of these adjacent practices, and I feel like we’ve invested so much in these businesses getting to a certain scale that now I just feel like we’re sort of really, really hitting the big leagues,” he said.
“I feel like it’s gonna be our best days yet.”
About the Author
Mirtha Donastorg is a reporter on The Atlanta Journal-Constitution’s business team focusing on Black wealth, entrepreneurship, and minority-owned businesses as well as innovation at Atlanta’s HBCUs.
