Investment firm Antarctica Capital has signed a definitive agreement that will see its affiliate acquire technology-driven life and annuity platform Midwest Holding in an all-cash deal of around $100m.
As per the terms of the deal, shareholders of Midwest will get $27.00 in cash for each share, which marks a 97% premium to its closing share price on 28 April this year, and a 75% premium over Midwest’s 30-day volume-weighted average price as of the same date.
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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. We look forward to working with the Antarctica team in this exciting new chapter.”
Antarctica Capital managing partner Chandra Patel said, “Midwest is an innovative insurance platform with an impressive team that has built a rapidly growing annuity business. 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.
“In addition, we plan on utilising our platform and existing partnerships to accelerate Midwest’s “capital light strategy” to drive future growth. We look forward to welcoming Midwest to the Antarctica family of companies.”
After closure of the deal, Midwest will continue to be led by its present leadership team.
Furthermore, Midwest is expected to retain its name, personnel, headquarters in Lincoln, Nebraska, besides its operational hubs in New York and Vermont.
The deal has been approved by Midwest’s board of directors unanimously.
It is expected to complete in the second half of this year, subject to some customary closing conditions, including the receipt of insurance regulatory approvals and approval by Midwest shareholders.
The shareholders of Midwest that represent about 33% of the company’s issued and outstanding shares have agreed to vote in favour of the deal, which is not subject to any financing conditions.
