Global investment firm Antarctica Capital has signed an agreement with technology-driven life and annuity platform Midwest to acquire the latter in an all-cash deal worth nearly $100m.
According to the terms of the agreement, shareholders of the US-based publicly listed firm will be paid $27 per share by an affiliate of Antarctica Capital.
Midwest said that the deal represents a premium of 97% to the firm’s closing share price on 28 April 2023 and a 75% premium over its 30-day volume-weighted average price, as of the same date.
The deal has been unanimously approved by the life and annuity platform’s board of directors.
Established in 2003, Midwest designs and creates in-demand annuity products that are distributed via independent distribution channels to the expanding demographic of US retirees.
The firm also offers the operational and regulatory infrastructure and expertise to allow asset managers and third-party investors to create their own reinsurance capital vehicles.
Midwest CEO Georgette Nicholas said: “This transaction delivers a substantial cash premium to our shareholders while also providing Midwest with the resources necessary to fully capitalise on our platform, business momentum and market opportunity.
“The Board of Directors and management team conducted a comprehensive review of value creation opportunities, and we are confident this transaction provides a highly attractive outcome for Midwest.”
Upon closing of the deal, Midwest will continue to be led by its present leadership team and maintain its brand, staff, and headquarters in Lincoln, Nebraska, as well as operational hubs in New York and Vermont.
Antarctica Capital managing partner Chandra Patel said: “The acquisition of Midwest represents a significant milestone for Antarctica’s insurance strategy.
“Antarctica brings to Midwest its investment management expertise and asset origination capabilities that will enable Midwest to enhance the value it provides to its policyholders.”
Subject to certain customary conditions, receipt of insurance regulatory approvals, and Midwest shareholders’ approval, the transaction is expected to be complete in the second half of 2023.
