Jan. 25 (Bloomberg) -- Bain Capital LLC, the Boston-based private-equity firm co-founded by Mitt Romney, said it invested $238 million in SquareTrade Inc. to expand the company’s consumer warranty business.
SquareTrade, based in San Francisco, sells warranties on products ranging from Apple Inc.’s iPhones to Nintendo Co.’s Wii video-game systems to retail customers on its website. The closely held company also sells its warranties on EBay Inc.’s and Amazon.com Inc.’s online store services. Bain’s buyout and venture-capital units jointly made the investment, the firm said in a statement today. Other terms weren’t disclosed.
“We were attracted by the incredibly high satisfaction levels among consumers and retailers, along with the vision of co-founders Steve Abernethy and Ahmed Khaishgi,” Phil Loughlin, a managing director at Bain Capital, said in the statement.
SquareTrade’s sales more than doubled last year from the year before and the company expects similar revenue growth this year, according to the statement. The company previously got investments from JP Morgan Partners and Weston Presidio Capital.
Bain, which manages about $60 billion in assets, has received heightened public attention this year as opponents of Republican presidential candidate Romney have attacked the former Bain chief executive officer, saying he enriched himself at the cost of corporations and their employees. Romney’s tenure at Bain ended in 1999.
Stephen Pagliuca, a Bain managing director, defended the private-equity industry in a television interview with CNBC today.
“Private equity is a force that’s good for America, and I hope we don’t do anything to damp that down,” Pagliuca said.
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