PriyaPatel
TLDR:
Key Points:
- Mubadala Investment Co. proposed selling Wefox Holding AG to Ardonagh Group Ltd., a deal opposed by Wefox’s founders.
- Wefox was valued at $4.5 billion in a previous funding round but has faced financial challenges recently.
In a recent proposal, Mubadala Investment Co. suggested selling the insurance tech startup Wefox Holding AG to UK insurance broker Ardonagh Group Ltd. The deal, however, is being opposed by Wefox’s founders. Wefox, once valued at $4.5 billion, has encountered financial troubles in the past year, with losses exceeding €100 million. Mubadala’s proposal to sell Wefox to Ardonagh for an enterprise value of up to €550 million has sparked disagreement among key shareholders, including Chrysalis Investments and Target Global.
While Mubadala seeks to streamline Wefox through a sale, the founders and early investors are advocating for a new funding round by existing investors. This alternative proposal aims to mitigate the risk of losing their entire investment and is supported by Chrysalis and Target. The proposed deal would split Wefox into two entities, with Ardonagh taking over the core business and early shareholders retaining ownership of the tech platform and Swiss operations.
Discussions surrounding the proposed sale and alternative funding round are set to take place at an extraordinary shareholder meeting scheduled for June 28. Wefox’s financial performance in 2023 and the first four months of 2024 are outlined in documents seen by Bloomberg, highlighting the company’s challenges and potential for growth.
