White Mountains-backed MediaAlpha to sell stake to private equity firm

MediaAlpha, a marketing technology company which Bermuda-based White Mountains is a significant equity holder in, has agreed to sell a significant minority stake to private equity firm Insignia Capital Group.

The deal values MediaAlpha at approximately $350 million.

White Mountain will retain a 42 percent ownership interest on a fully-diluted basis, and it expects to receive net cash proceeds of approximately $85 million from the transaction.  The deal will result in a gain of approximately $55 to White Mountains' book value per share and its adjusted book value per share.

"This transaction is an important milestone for MediaAlpha.  It recognizes the significant value that the MediaAlpha team have created to date, and it sets the stage for further value creation going forward," said Manning Rountree, CEO of White Mountains.  "We are excited to welcome Insignia Capital as our new institutional investment partner. The Insignia team has a proven track record of investing in high-growth marketing technology businesses, and their strategic and operational guidance will be highly valuable."

MediaAlpha's founding managers will continue to lead the business and will remain a significant equity holder.