Onex Corp has agreed to acquire OneDigital, an Atlanta-based strategic advisory business. The seller is New Mountain Capital. The enterprise value of the deal was $2.65 billion. JP Morgan acted as financial advisor to OneDigital on the deal, which is expected to close in the fourth quarter. OneDigital is focused on providing health, retirement and wealth, and human resources solutions to employers.
Correction: An earlier version of the headline and news report misstated the value of this deal. It has since been corrected.
ATLANTA–(BUSINESS WIRE)–OneDigital, the nation’s leading strategic advisory firm focused on delivering health, retirement/wealth and HR solutions for employers of all sizes, announced today that it has signed a definitive agreement to partner with Onex, one of the world’s oldest and most successful private equity firms with a proven track record of growing innovative global companies. Onex is acquiring a majority ownership position from New Mountain Capital.
“Aligning with an investor group like Onex represents a strategic investment for the future of our firm and supports our ability to deliver exceptional experiences for our customers,” said Adam Bruckman, president and CEO of OneDigital. “We remain committed to serving as a strategic advisor to ease the immediate burden companies are facing today and walk alongside them as they rebuild for the future. This investment means we can offer more specialized guidance and personalized service for years to come.”
“OneDigital has a vision for the future that will reshape the way in which employers of all sizes support their employees with issues of paramount importance – gaining access to affordable healthcare and preparing for retirement while supporting financial literacy via wealth management services,” said Todd Clegg, a Managing Director at Onex. “There is a tremendous investment opportunity to deploy capital and consolidate talent while expanding into adjacent insurance and financial services verticals where we have a great deal of experience.”
“Our investment in OneDigital, its leadership team and national footprint of experienced advisors, as well as its best-in-class operating platform, lays the groundwork to build together for years to come,” Clegg added. “There is no other firm in the industry that combines decades of cohesive management experience, an expansive and adaptive infrastructure, and a culture that attracts teams for the long term. OneDigital’s customers will benefit from that expertise and commitment.”
Mike Sullivan, co-founder and Chief Growth Officer at OneDigital leads the firm’s mergers and acquisitions team and said, “Our position in the marketplace has continued to attract the interest of partners, investors and, ultimately, customers. Our vision for the future is as unique as it is simple – our exceptional advisory teams have a distinctive skillset and the ability to provide counsel around the toughest challenges facing businesses and employees across health, retirement/wealth and HR. Our partners and investors believe in this vision and continue to support our growth as we add services to benefit our customers.”
JP Morgan acted as the exclusive financial advisor to OneDigital for this transaction. Closing is contingent on HSR clearance and is expected in the fourth quarter of 2020.
OneDigital is the leading strategic advisory firm in the U.S. and has consistently led from the front as a workplace ally for 20 years. OneDigital’s unique ability to converge health, wealth and human resources into a hub of services and business guidance has empowered companies to create workplaces that attract and retain talent while fueling innovation and company growth. As employee healthcare, wellness and workplace benefits continue to shift, companies of all sizes have relied on OneDigital’s exceptional advisory teams for counsel and its adjacent services, including employee benefits, holistic HR services, retirement and wealth management, employee wellbeing and pharmacy consulting. Headquartered in Atlanta, OneDigital’s more than 100 offices and 2,000 business strategists serve the needs of over 50,000 employers across the nation.
OneDigital has been named to the Inc. 5000 List of America’s fastest-growing companies every year since 2007, one of only 12 companies to do so. Currently listed as 18th on Business Insurance’s list of 100 Largest U.S. Brokers, OneDigital’s deep analytic abilities and experienced advisors deliver insights that reduce business risk and improve plan design and performance. For more information, visit www.onedigital.com.
Founded in 1984, Onex invests and manages capital on behalf of its shareholders, institutional investors and high net worth clients from around the world. Onex’ platforms include: Onex Partners, private equity funds focused on larger opportunities in North America and Europe; ONCAP, private equity funds focused on middle market and smaller opportunities in North America; Onex Credit, which manages primarily non-investment grade debt through collateralized loan obligations, senior loan strategies and other private credit strategies; and Gluskin Sheff’s wealth management services including its actively managed public equity and public credit funds. In total, Onex has approximately $35.6 billion of assets under management, of which approximately $6.6 billion is its own shareholder capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.
The Onex Partners and ONCAP businesses have assets of $45 billion, generate annual revenues of $25 billion and employ approximately 165,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedar.com.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over $20 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.