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Assurant (AIZ) Acquires HYLA Mobile, Gears Up for 5G Upgrade

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Assurant (AIZ - Free Report) acquired HYLA Mobile in an effort to consolidate its position as a leader in trade-in and upgrade programs. The transaction was announced in October.

HYLA Mobile is a leading provider of smartphone software, trade-in and upgrade services. The buyout will double device processing volumes along with adding device diversity, talent, patented technology and capabilities. Thus, Assurant is well equipped to capitalize on the forthcoming 5G smartphone upgrade cycle.

The buyout will also provide a complementary client base, including the largest mobile carriers, retailers and OEMs in North America and Japan.

Assurant financed the buyout with available cash and new debt. It stated the combination will help it optimize the capital structure, while maintaining investment grade ratings.

Biju Nair, former president and CEO of HYLA stated, “We are anticipating increased volume and global demand for trade-in solutions as we prepare for the upcoming 5G trade-in cycle”. HYLA Mobile is set to benefit from Assurant’s technical expertise.

Assurant, a global provider of risk management solutions in the housing and lifestyle markets, has adopted inorganic and organic growth strategies. The buyout of American Financial & Automotive Services in April 2020 was intended to fortify market position and add scale. It recently acquired a vendor network management company, Fixt to reinforce its proprietary device lifecycle management platform, which will assist customers with expanded options to overcome problems with their mobile devices. Also, it will aid in the management of service experience.

Shares of Assurant have gained 0.2% year to date against the industry’s decrease of 12.6%. Focus on Specialty Property and Casualty and Lifestyle Protection should continue to drive share price.    



Assurant currently carries Zacks Rank #4 (Sell).

There have been a host of acquisitions in the insurance space of late, given the significant capital available. Kemper Corporation (KMPR - Free Report) agreed to acquire American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries to strengthen the acquirer’s Specialty Auto segment. Arch Capital Group (ACGL - Free Report) agreed to acquire Watford Holdings (WTRE - Free Report) . Watford Holdings is considered a variable interest entity and Arch Capital believes that it is the primary beneficiary of Watford Holdings.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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