Likewize, a recent transplant to the DFW metro, announced on Tuesday it acquired Optus Insurance Services (OIS) for approximately $140 million. OIS is a subsidiary of Optus, the second-largest telecommunications company in Australia.
Likewize provides insurance solutions for mobile devices, whether is a stolen phone, cracked screens or malfunctioning electronics. The company also handles electronics recycling and provides tech support. Originally headquartered in Florida, Likewize moved to Southlake back in August and has also opened offices in the United Kingdom and Australia.
The acquisition involves Likewize purchasing 100 percent of OIS’ shares which totals approximately $140 million. As part of the agreement, Likewise will also provide Optus customers with mobile device insurance services, device replacement and upgrades for the next 15 years.
“This is a very significant acquisition for us. It strengthens our device protection portfolio, creates a long-term partnership with one of Australia’s leading mobile carriers and increases our ability to scale and deliver unprecedented levels of service to all customers in that market,” Likewize CEO Rod Millar said in a statement. “We believe that this acquisition — together with several, recent large customer wins — position Likewize to continue to deliver strong growth moving forward.”
According to a prepared statement by the company, the deal is expected to be complete by the end of Q2.
“The structure of the arrangement also enables Optus to provide our customers with new, more flexible and more complete products for device repairs, upgrades and replacements, provided through our partnership with Likewize,” Matt Williams, managing director of products and revenue at Optus, said in a statement. “This means Optus will go further in meeting customer needs, expanding our offering and growing this part of our business accordingly.”
Likewize has acquired several other subsidiaries in the past, including WeFix, Risk Insure and NexLink Communications. Those acquisitions have been strategic investments that allowed Likewize to offer its services in other countries or different regions of the U.S. For example with WeFix, Likewise is capable of offering “Samsung-approved” repairs in the United Kingdom.