Copyright Benzinga
Roadzen, Inc. (NASDAQ:RDZN) on Wednesday disclosed that it inked a deal to acquire a majority controlling stake of a licensed commercial auto insurance broker and managing general underwriter (MGU). The financial terms of the deal were not disclosed. The acquiree company is based in California and operates across several U.S. states. Notably, the MGU holds licenses in California, Texas, Illinois, and New Jersey, as well as Lloyd's of London Coverholder status. Also Read: Roadzen Announced Public Offering Pricing The acquisition allows the MGU to underwrite specialty transportation and commercial vehicle risks for leading U.S. insurers and Lloyd's syndicates. The company serves small and mid-sized fleets via several national networks of agencies and producers. The business operates on a commission-based model, eliminating underwriting risk, and earns revenue as a percentage of premiums. The company has scaled rapidly and reached an annualized premium run rate of $20 million as of September 2025. The buyout is expected to close within the next few weeks, subject to customary closing conditions. Post-closing, the company will be merged with DrivebuddyAI and National Auto Club. This integration will combine telematics, roadside assistance, claims, and distribution to form a single platform for the U.S. commercial auto market. Synergies The deal will enable Roadzen to accelerate its U.S. expansion and offer data-driven, AI-powered insurance solutions. The buyout adds six new carrier relationships. It also adds over 90 new commercial fleets to the Roadzen platform, representing potential annual premiums of more than $100 million. The acquisition is projected to be immediately accretive to the company and contribute over $8 million in annual revenues over the next twelve months with 25% Adjusted EBITDA margins. Also, Roadzen expects the platform to grow to over $200 million in Gross Written Premium (GWP) within three years. Management Commentary Rohan Malhotra, Founder and CEO of Roadzen, said, "We are delighted to work with this leadership team and believe the acquisition will have tremendous strategic synergy with our technology and existing operations in the U.S. — a foundation to lead the transformation of the $75+ billion commercial auto insurance market," "With the growth we're seeing in India, the recently announced major OEM partnership in Europe, and now this expansion in the U.S., it's another step in our mission toward building the world's defining company at the intersection of insurance, mobility, and artificial intelligence." Price Action: RDZN shares closed lower by 1.43% at $1.38 on Tuesday. Read Next: Nokia Partners With Zayo To Deliver Faster, More Reliable Cloud Access, Data Center Connectivity, And Secure High-Speed Links Image via Shutterstock
