Birmingham’s auto insurance provider bought for $1.4 billion
BIRMINGHAM, Ala. (AP) — Birmingham-based Infinity Property and Casualty were bought for $1.4 billion.
Kemper Corp. acquired the auto insurance provider in a cash and stock transaction, making it one of the largest nonstandard auto insurers in the country, Al.com reported . The merger will create a combined company with $2.2 billion in nonstandard auto insurance premiums.
Infinity has 2,300 employees and 10,600 independent agents.
Glen N. Godwin, Infinity CEO, said the two companies “have a terrific strategic and cultural fit.”
“As part of a larger company, Infinity will have access to the capabilities and resources necessary to drive accelerated growth and better serve our policyholders and partner agents,” Godwin said. “In addition, Infinity shareholders will benefit from immediate and certain value for their shares as well as the opportunity to participate in the significant upside potential of the combined company.”
Joseph P. Lacher, Jr., Kemper’s President and CEO, said the deal joins two well-known brands.
“We look forward to welcoming the Infinity team to the Kemper family and working together to deliver greater choice to our policyholders through an expanded product offering and deeper relationships with our agent networks, while generating strong returns for our shareholders,” Lacher said.
The terms of the merger state that Infinity shareholders will receive $51.60 in cash and 1.2019 Kemper common shares for each share of Infinity common stock. The deal is expected to close in the third quarter, subject to shareholder approval.