The insurers issued a joint statement that they had just inked a $1.9 billion cash merger agreement.
National Western Life Group, Inc. and Prosperity Life Group, have announced that a definitive Merger Agreement has been signed between them.
This will involve the acquisition of National Western by an affiliate of Prosperity Life Group.
Oe of Prosperity Life Group’s affiliates, the S. USA Life Insurance Company, Inc., will be acquiring National Western. The deal between the insurance companies will be entirely in cash in a transaction valued at about $1.9 billion.
As a component of this agreement, each of the issued and outstanding National Western common stock would be converted into $500 in cash upon the merger’s closing.
The merger was unanimously approved by the board of directors at National Western.
“The acquisition of National Western represents a significant milestone in the continued expansion of our insurance business,” said Prosperity Life Group CEO and President Nicholas von Moltke. “We look forward to welcoming National Western to Prosperity Life Group. National Western’s capabilities will further complement our ambition to deliver a compelling value proposition to our policyholders and the company.”
Both insurance companies have released statements showing their enthusiasm over the deal.
“This is an exciting moment in National Western’s history. I would like to thank our board of directors, particularly our strategic opportunities committee of independent directors, which conducted a thorough review of a range of strategic alternatives and possible business opportunities to maximize value for our stockholders,” said National Western’s board chair and CEO Ross R. Moody. “The transaction provides clear and immediate value for our stockholders at an attractive premium.”
The merger between the insurance companies is expected to close at some point within the first half of next year. It remains subject to various typical closing conditions for this type of transaction, such as approval by the National Western stockholders, receipt of regulatory approvals, and antitrust clearance.
National Western common share owners collectively represented about 29.7 percent of the company’s total voting power (including about 99 percent of the company’s Class B stock) and executed voting and support agreements with the S. USA Life Insurance Company.