IA American Holdings To Acquire Vericity In About $170 Mln All Cash Deal
(RTTNews) - iA Financial Corp., Inc., the holding company of iA Financial Group (IAG.TO), announced Tuesday it has entered into a definitive merger agreement whereby iA American Holdings, Inc., a subsidiary of the Company, will acquire Vericity, Inc. (VERY) for $11.43 per share or a total cash consideration of about $170 million. The deal will be funded by iA with cash in hand.
The per share merger consideration represents a 101% premium to Vericity's closing share price of $5.70 on October 2, 2023, the last full trading day prior to the announcement of the transaction. The transaction is not subject to any financing condition or contingency.
Vericity comprises two entities, Fidelity Life and eFinancial, servicing the middle-market life insurance space, with synergies in between and combining artificial intelligence and rich data analytics.
The merger, which is unanimously approved by Vericity's board of directors, is expected to close in the first half of 2024, subject to obtaining the usual regulatory approvals in Canada and the United States. The transaction is expected to become slightly accretive to core EPS in year 2 and to EPS in year 3.
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