Private equity firm Ardian has acquired a stake in SFAM, a European broker of smartphone and multimedia insurance.
SFAM was founded in 1999 by Sadri Fegaier and is based in France. It designs, sells, and manages insurance products for mobile phones and multimedia devices with extended warranties.
The business has 1,300 employees and expects to achieve gross sales of €500 million in 2018.
SFAM already has operations in France, Belgium, Spain, and Switzerland and is considering expanding into Portugal, the Netherlands, and Italy.
It also intends to continue diversifying its insurance services for portable and multimedia products and will launch a new online service in 2018 under the brand name Hubside.
Alongside the transaction Winch Capital 3, which is managed by Edmond de Rothschild Investment Partners, is selling a portion of its stake in SFAM.
Sadri Fegaier, Founding Chairman of SFAM, said: ”We are thrilled to welcome Ardian as a shareholder of our company and for them to accompany us as we enter a new phase in our development. Having this high-value partner is important as it provides the company with both financial and human resources so that we can continue our rapid growth. We will continue to focus on maintaining the satisfaction of our distributor partners, insurers and customers, while also looking into opportunities for external growth.”
Yann Bak, Managing Director at Ardian Buyout, added: “SFAM's exponential growth is remarkable and we are looking forward to being able to support the company as it continues along this path. SFAM has a unique position thanks to its great capacity for innovation, its operational excellence, and the quality of its services. We would like to thank Sadri Fegaier and his team for their confidence in Ardian.”