Allstate announced Monday it had agreed to acquire Squaretrade, which sells warranties for electronic products online. Squaretrade was founded in 1999 is backed by Bain Capital.
“This acquisition expands Allstate’s customer relationships with 25 million protection plans for consumer electronics and connected devices,” said Tom Wilson, chief executive at Allstate. Squaretrade is backed, in part, by Boston-based Bain Capital. Allstate will acquire SquareTrade with its cash and by issuing debt, the company said in a prepared statement. The transaction is expected to be a drag on Allstate’s per-share earnings for three years. The deal is pending regulatory approvals, among other closing conditions.