Why Shares of Tiptree Are Soaring Today
Shares of specialty insurance and investment management company Tiptree (NASDAQ: TIPT) had jumped more than 26% as of 11:15 a.m. EDT after the company announced a strategic partnership with Warburg Pincus.
A growth investment private equity firm, Warburg Pincus plans to inject $200 million into one of Tiptree's subsidiaries, The Fortegra Group, a specialty insurance company in the U.S. and Europe. The deal is divided into $120 million of common equity and $80 million of convertible preferred stock. In return, Warburg will receive a 24% stake in The Fortegra Group.
"This investment accomplishes many of our strategic goals including raising capital to accelerate Fortegra's growth and recapitalizing both companies balance sheets through the repayment of indebtedness," Tiptree's executive chairman Michael Barnes said in a statement.
Source Fool.com
