Louisiana-based insurer GoAuto acquired by out-of-state buyer
BATON ROUGE - GoAuto, a Louisiana-based company touting its low-cost insurance and known for its ubiquitous television commercials, has been bought up by an equity firm based out of Pennsylvania.
Milestone Partners announced the acquisition Thursday, saying that it had obtained GoAuto and its technology platform, Adaptive Information Technologies. In tandem with that purchase, the company also announced the formation of Drive Assurance Holdings, a specialty auto insurance company.
GoAuto's owner, Greg Tramontin, told WBRZ that "everything is remaining the same" for policyholders and that his workforce in Baton Rouge won't see any immediate changes.
Tramontin said he will stay on as CEO for now and that the company will keep its name.
As far as the famous commercials featuring "Greg the GoAuto Guy," Tramontin joked that "there will probably be some changes."
Read the full announcement below.
Milestone Partners is pleased to announce the formation of specialty auto insurance holding company Drive Assurance Holdings LLC (“Drive Assurance”) and the related acquisition of GoAuto, LLC (“GoAuto”) and its affiliated technology platform, Adaptive Information Technologies, LLC (“AIT”).
GoAuto is a tech-focused, vertically integrated personal auto insurance platform providing low-limit policies through its managing general agent and insurance carrier subsidiaries. Founded in 2009, GoAuto distributes policies direct-to-consumer online and through 70 captive storefronts, and leveraging AIT’s proprietary data analytics and underwriting technology, has historically demonstrated lower loss ratios and higher margins than its industry peers. GoAuto’s insurance carrier’s dedicated balance sheet capacity enables greater value chain capture augmented by reinsurance relationships that enable an asset light model and mitigate retained risk.
GoAuto’s specialty market segment is growing, highly fragmented and estimated to be over 22% of $260 billion total personal auto insurance premiums. GoAuto is the third largest personal auto insurer in Louisiana with growing operations in Texas, Nevada and Ohio. Milestone plans to implement Environmental, Social and Governance and Diversity, Equity and Inclusion policies at GoAuto.
Adam Curtin, Partner at Milestone, stated: “GoAuto’s proprietary software enables superior customer analytics and data-driven operations that have established them as a market leader. We look forward to working with the management team on executing their strategic initiatives.”
Greg Tramontin, CEO and Founder of GoAuto said: “We are excited to partner with Milestone during this next stage of growth. Given their targeted sector focus on financial technology companies and robust experience in automotive financial services, we are confident that together we will continue to provide best-in-class vehicle protection products and customer service to our valued policyholders.”
Summit Partners Credit Advisors, Everberg Capital, LBC Credit Partners, Principal Alternative Credit and FS Investments provided a senior credit facility to support Drive Assurance in the transaction. Piper Sandler & Co. and Butler Snow acted as financial advisor and legal advisor to GoAuto, respectively. Troutman Pepper LLP acted as legal advisor to Drive Assurance and Milestone.