Optus offloads device insurance business to US-based Likewize for $200 million

Optus has announced it has sold its mobile phone and tablet insurance service business to US-based tech repairs and device insurance company Likewize for $200 million.

The business, called Optus Insurance Services (OIS), specialises in device insurance services often sold as an add-on service to its mobile phone plans.

The acquisition cost includes $35 million for Likewize to wholly acquire OIS, while $165 million will pay for a 15-year exclusivity period where Likewize will service plans for existing Optus insurance customers to supply the telco’s customers with a new set of device replacement and upgrade plans.

Optus managing director of products and revenue Matt Williams said Optus “has ensured the transition will be seamless” for existing Optus Insurance customers and enable further revenue growth opportunities for the two companies.

“As we aim to become Australia’s most loved, everyday brand with lasting customer relationships, we always strive to provide customers who have purchased insurance from us with peace of mind– and nothing has changed in this regard. This is a strong partnership and Optus and Likewize remain committed to looking after our customers’ protection needs,” Williams said.

“The structure of the arrangement also enables Optus to provide our customers with new, more flexible, and more complete products for device repairs, upgrades and replacements, provided through our partnership Likewize, the world’s leading tech protection company. This means Optus will go further in meeting customer needs, expanding our offering, and growing this part of our business accordingly.”

Likewise chief executive Rod Millar said the agreement and partnership will set up both Likewize and Optus for future success.

“We have a long history of building trusted relationships with customers in Australia and the opportunity to resolve all the device issues for Optus customers is truly exciting,” Millar said.

“We are committed to providing solutions quickly and with the highest levels of customer care.”

Optus said it expects the acquisition will be completed in the second quarter of the 2022 calendar year, subject to regulatory approval.