In a significant transaction for Vericity, Inc. (NASDAQ:VERY), Apex Holdco L.P. and its affiliates have sold their entire stake in the company, amounting to a total of 11,373,352 shares. The shares were sold at a price of $11.43 each, culminating in a total transaction value of $129,997,413.
The sale took place on June 28, 2024, and was disclosed in a regulatory filing with the Securities and Exchange Commission on July 2, 2024. The transaction marks a complete divestiture of Apex Holdco L.P.'s holdings in Vericity, as reported post-transaction amounts indicate zero shares owned following the sale.
The entities involved in the sale alongside Apex Holdco L.P. include JCF Associates IV L.P., JCF Associates IV Ltd., Apex Holdco GP LLC, and Flowers J. Christopher, all of which are affiliated with J.C. Flowers & Co. This collective of investors has been a significant shareholder in Vericity, each holding a ten percent ownership prior to the sale.
This transaction follows the acquisition of Vericity by a subsidiary of iA Financial Corporation, Inc., as part of an Agreement and Plan of Merger dated October 3, 2023. According to the terms of the agreement, each share of Vericity common stock was converted into the right to receive $11.43 in cash, which corresponds to the price per share in this recent sale.
Investors and market watchers will likely take note of this substantial sale as it may reflect strategic moves by the involved parties post-acquisition. The complete exit of these significant shareholders from Vericity's ownership structure could have implications for the company's future direction and governance.
The filing included signatures from representatives of the selling entities, with J. Christopher Flowers signing for both JCF Associates IV L.P. and JCF Associates IV Ltd., indicating his role as a director and significant influence in these transactions.
As Vericity continues its operations post-merger, the market will be watching closely to see how this change in ownership impacts the company's performance and strategy moving forward.
InvestingPro Insights
Following the noteworthy sale of Vericity, Inc. by Apex Holdco L.P. and its affiliates, investors are keenly observing the company’s financial health and market position. Real-time data from InvestingPro provides a snapshot of Vericity's financial metrics which may offer insights into the company's current valuation and performance.
InvestingPro Data indicates that Vericity has a market capitalization of $170.02 million USD, reflecting the size of the company in the competitive market. Despite a challenging period, Vericity has demonstrated resilience with a revenue growth of 5.57% over the last twelve months as of Q1 2024. Additionally, the company's gross profit margin stands at a strong 51.92%, suggesting a robust ability to control costs relative to its revenue.
However, the company's P/E ratio is currently negative at -12.56, and further adjusted to -16.02 for the last twelve months as of Q1 2024, signaling that Vericity is not profitable during this period. This aligns with one of the InvestingPro Tips which notes that Vericity has not been profitable over the last twelve months. Moreover, the company does not pay a dividend, which could influence the investment decisions of income-focused shareholders.
On a positive note, another InvestingPro Tip highlights that Vericity's liquid assets exceed its short-term obligations, suggesting a sound liquidity position that may reassure investors of the company's ability to meet its immediate financial liabilities.
For those looking to delve deeper into Vericity's financials and future outlook, InvestingPro offers additional analysis and tips. There are several more InvestingPro Tips available, which can be accessed through a subscription. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a more comprehensive understanding of the company's performance and potential investment opportunities.
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