New York-based insurance holding company AmTrust Financial Services Inc. has agreed to acquire Warranty Solutions, a Wells Fargo business, for $152 million in cash.
Warranty Solutions markets and underwrites vehicle service contracts for new and used automobiles through a network of more than 70 agencies, and 1,500 franchised and independent dealers.
Pending regulatory approval, the parties expect closing will occur in the third quarter 2015.
AmTrust President and CEO Barry Zyskind said the deal will extend AmTrust’s existing vehicle warranty business while adding new fees and service business.
Warranty Solutions includes Warranty Solutions Management Corp., Heritage Indemnity Co., Westlake Insurance Co. (Bermuda) Ltd., Warranty Solutions Administrative Services Inc., WS Aftermarket Services Corp. and Heritage Mechanical Breakdown Corp.
Warranty Solutions will retain its existing name, leadership, team members and continue working in Lakewood, Colorado, according to the announcement.
AmTrust Financial Services offers specialty property/ casualty insurance products.