Tiptree Insurance Reaches Agreement to Acquire Smart AutoCare

Tony Russell • Auto Warranty, Extended Warranties • December 23, 2019

Peter Masi to remain CEO of Smart AutoCare

Tiptree Inc. (NASDAQ: TIPT) and Peter Masi today announced that Tiptree Insurance has agreed to acquire Smart AutoCare, a rapidly growing vehicle warranty solutions provider led by its founder and CEO, Peter Masi, in an all cash transaction that will also include incentive-based earn outs over time. The transaction is subject to customary closing conditions including regulatory approval and is expected to close early in the first quarter of 2020. Peter Masi will remain CEO of the business.

We believe Peter and his team will contribute to accelerating our growth in the warranty sectors for years to come

The acquisition is expected to expand Tiptree’s warranty distribution channels by more than doubling its presence in the auto warranty sector. With annualized premiums and equivalents of $200 million and cash and liquid assets of $120 million, Smart AutoCare will enhance Tiptree’s warranty scale and market presence by nearly 40% and significantly increase Tiptree’s fee-based cash flows generated outside of its regulated insurance subsidiaries.

“Tiptree’s acquisition of Smart AutoCare advances our position as a leading provider of warranty and niche insurance products. We believe Peter and his team will contribute to accelerating our growth in the warranty sectors for years to come,” said Michael Barnes, Tiptree's Executive Chairman.

Tiptree Insurance President and CEO, Rick Kahlbaugh said, “As a business partner of Smart AutoCare’s for many years, we have profound respect for Peter and the business he has built. Tiptree has been diligently exploring strategic opportunities in the warranty industry, and we are confident that we have found the right acquisition in Smart AutoCare. We are thrilled to welcome Smart AutoCare and Peter to the Tiptree Insurance family of companies.”

Peter Masi, Smart AutoCare CEO, said, “This creates a unique opportunity in the marketplace to position ourselves as a leader with a strong capital position, allowing us the resources and a flexible approach to provide solutions to our dealers and agents. This transaction creates an identity unlike any other in recent deals for us and our clients nationwide.”