Bermuda-based White Mountains Insurance Group Ltd has bought a controlling interest in US company Tranzact, which helps insurers acquire customers.

White Mountains acquired approximately 63 percent of Tranzact for $178 million, representing an enterprise value of approximately $280 million. After the closing of the deal, Tranzact completed a recapitalisation that allowed for the return of $44 million in capital to White Mountains.

Before the deal, Tranzact was a portfolio company of Veronis Suhler Stevenson (VSS) and Ares Management, LP, with VSS the majority owner.

Tranzact says it “provides end-to-end, performance-driven customer acquisition solutions to leading insurance carriers” and claims to be “a market leader in the direct-to-consumer distribution of insurance products”.

Tranzact employs more than 700 licensed insurance agents.

“We very much look forward to continuing our growth trajectory with White Mountains in the years to come,” said David Graf, CEO of Tranzact.

“Tranzact is uniquely positioned to help insurance companies reach consumers. We at White Mountains are excited to partner with the Tranzact management team to help them execute on their vision,” said Ray Barrette, chairman and CEO of White Mountains.

Based in Fort Lee, NJ, Tranzact’s revenue streams are derived from a brand-focused business model that supports the direct-to-consumer distribution capabilities of large insurance companies as well as marketplaces, such as medicaresupplement.com and autoinsurance.com, where consumers can shop for insurance.