Proactive Investors - National Western (NASDAQ:NWLI)’s shares shot up close to 14% at the market open on Monday after it announced has agreed to be acquired by S. USA Life Insurance Company (SUSA) an affiliate of Prosperity Life Group, for about $1.9 billion.
The merger consideration of $500 per share represents a 20% premium to the stock’s last close on Friday. Western Union said its board of directors has given its unanimous approval.
The deal also marks a pick-up in merger and acquisition (M&A) activity following a lull over the past couple of years due to economic uncertainty.
“The transaction provides clear and immediate value for our stockholders at an attractive premium,” commented National Western chairman and CO Ross Moody.
Prosperity Life president and CEO Nicholas von Moltk said acquiring National Western represents a significant milestone in the continued expansion of its insurance business.
“National Western's capabilities will further complement our ambition to deliver a compelling value proposition to our policyholders and the company,” Von Moltk added.
The companies expect the merger to close in the first half of 2024, subject to customary closing conditions including approval by National Western's stockholders, antitrust clearance and receipt of insurance regulatory approvals.
National Western noted that stockholders that collectively own common shares representing approximately 29.7% of the total voting power of the company's common shares — including 99% of the company's Class B common stock — have already executed voting and support agreements with SUSA.
National Western’s shares traded 13.9% higher at $475.26 shortly after the opening bell.