SquareTrade snags $238 million growth equity investment

The service, which sells warranties for consumer electronics and appliances, plans to use proceeds to fund company growth.

SquareTrade

Extended warranty service SquareTrade announced today it has secured a $238 million growth equity investment lead by Bain Capital.

Terms of the private financial transaction were not revealed.

The company, which sells warranties for consumer electronics and appliances directly and via more than 30 retailers and marketplaces, said its sales tripled in 2011 compared with 2010. It also expects to record "triple-digit" revenue growth in 2012, although the privately held company did not provide specific financial details.

"SquareTrade has been profitable and growing rapidly for several years," CEO and co-founder Steve Abernethy said in a statement. "We have a long term view of investing in service, technology and brand awareness to make SquareTrade uniquely high value, easy to research and easy to use."

The San Francisco-based company, which was founded in 1999 as an online merchant verification and dispute resolution service, changed its focus to warranties in 2004.

About the author

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers.

 

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