IA American Holdings Inc. entered into an agreement to acquire Vericity, Inc. from J.C. Flowers & Co. LLC and others for $170 million.
October 02, 2023
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iA American Holdings Inc. entered into a letter of intent to acquire Vericity, Inc. (NasdaqCM:VERY) from J.C. Flowers & Co. LLC and others for $170 million on October 2, 2023. iA American Holdings Inc. entered into an agreement to acquire Vericity, Inc. (NasdaqCM:VERY) from J.C. Flowers & Co. LLC and others for $170 million on October 3, 2023. As part of consideration, Vericity stockholders to receive $11.43 per share in cash. The purchase price of $170 million will be funded by iA with existing cash on hand. The transaction is subject to obtaining the usual regulatory approvals in Canada and the United States, antitrust approval, and other customary closing conditions for a transaction of this type. Stockholders of Vericity have adopted and approved the merger agreement. Vericity?s board of directors unanimously approved the merger agreement. The merger is expected to close in the first half of 2024.
Raymond James & Associates acted as financial advisor and fairness opinion provider and Todd E. Freed and Jon A. Hlafter of Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to Vericity. The transaction is expected to become slightly accretive to core EPS in year 2 and to EPS in year 3. David D. Luce and Jeffrey S. Hochman of Willkie Farr & Gallagher LLP acted as legal advisors for iA American Holdings Inc. RBC Capital Markets, LLC acted as financial advisor to iA American Holdings Inc. For services rendered in connection with the delivery of its opinion, Vericity paid Raymond James a fee of $500,000 upon delivery of its opinion. Vericity will also pay Raymond James a customary fee for advisory services in connection with the Merger of $1,530,000, all of which is contingent upon the closing of the Merger.
Vericity, Inc., through its subsidiaries, Fidelity Life Association (Fidelity Life) and Efinancial, LLC (Efinancial), provides life insurance protection targeted to the middle American market. The Companyâs segments include Agency, Insurance, and Corporate and other. The Agency Segment operates through Efinancial. Efinancial sells insurance products through its call center distribution platform and through its independent agents and other marketing organizations. The Insurance Segment operates through Fidelity Life. Fidelity Life engages in the principal business lines of Core Life, Non-Core Life, Closed Block, annuities and assumed life. In its Core Life and Non-Core Life business lines, Fidelity Life offers primarily term life insurance products, and to a lesser extent accidental death and final expense products. Its RAPIDecisionLife product offers coverage at the point of issue that is a blend of all-cause term life insurance for part of the coverage and accidental death insurance.