White Mountains Insurance Group Ltd said on Friday that it had entered into an agreement to acquire a majority stake in Bamboo Ide8 Insurance Services LLC.
White Mountains said it would invest nearly $285 million, including primary capital to support Bamboo’s growth, while acquiring about 70% of Bamboo’s basic shares outstanding.
Established in 2018, Bamboo provides homeowners’ insurance for more than 100,000 California policyholders.
Founder John Chu and the current Bamboo management team will continue to direct the business through its next phase, as they will retain a considerable equity stake.
The deal is expected to be finalized in the first quarter of 2024, subject to regulatory approvals and other customary closing conditions.
“We are pleased to make this investment alongside John and the Bamboo management team. Bamboo is delivering a much-needed insurance alternative to homeowners in California. Bamboo has strong momentum, and we look forward to supporting its continued growth,” Chris Delehanty, Head of M&A of White Mountains, said in a press release.
“This transaction marks a new and exciting chapter for Bamboo. We are fortunate to have found a like-minded capital partner who shares our vision and has a strong track record of successful insurance partnerships,” John Chu, Founder and Chief Executive Officer of Bamboo Ide8 Insurance Services, commented.
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