Intact Financial Corp. to buy U.S. specialty insurer for US$1.7 billion
TORONTO _ Intact Financial Corporation (TSX:IFC) says it has reached a US$1.7-billion deal to buy OneBeacon Insurance Group, Ltd., a U.S. specialty insurer.
Under the terms of the allcash deal, OneBeacon shareholders will receive US$18.10 cash per common share, a 14 per cent premium based on OneBeacon’s closing stock price on the NYSE of US$15.89 as of May 1, and a 15 per cent premium to the volume weighted average price over the last 30 days.
In addition, OneBeacon debt of approximately US$275 million will remain outstanding. Pending approval by OneBeacon’s shareholders, Toronto-based Intact says the acquisition will make it a North American leader in specialty insurance with more than C$2 billion of annual premiums.
Intact says the deal will bolster its Canadian business with new products and crossborder capabilities, and better positions Intact to compete with international insurers.