Home Private Equity GoAuto sells majority stake to private equity firm

GoAuto sells majority stake to private equity firm


Greg Tramontin, GoAuto president and CEO. (Collin Richie)

Milestone Partners, a Philadelphia-based private equity firm, has purchased an 80% stake in GoAuto, a low-cost auto insurer. 

Founder Greg Tramontin, familiar from the company’s commercials as the “GoAuto guy,” will stay on as CEO for an “undetermined amount of time,” he says, adding that none of the company’s approximately 350 employees in Louisiana, Ohio, Nevada and Texas will be let go. 

In fact, he says the new owners plan to keep the GoAuto brand and expand the company’s footprint beyond the four states, which means he will be looking for more workers. 

“GoAuto’s proprietary software enables superior customer analytics and data-driven operations that have established them as a market leader,” Adam Curtin, a partner at Milestone, says in a prepared statement. 

Tramontin says the software was developed with his previous company—USAgencies, which he sold in 2007and improved for GoAuto after his two-year noncompete agreement ended and he started the new company. 

“We’re heavily automated,” he says. “That was the reason for acquiring us.” 

Tramontin says the deal that closed this week unfolded over a “long, arduous” 15-month process. He says he will continue to own 11% of the company. 

GoAuto is the third-largest personal auto insurer in Louisiana and is growing in Texas, Nevada and Ohio, Milestone says. 

In 2020, social media users called for a boycott of GoAuto after Tramontin referred to then-Vice President-elect Kamala Harris as a “hoe” in a Facebook post. He later apologized, saying he was “caught up in the deep political divide and the toxic rhetoric that this country has been living in for the past several years.”

Source link

Previous articleBest Commodities to Invest in for Growth in 2022
Next articleDallas Venture Capital Closes $80M Early-Stage B2B SaaS Fund


Please enter your comment!
Please enter your name here