Dutch life insurance specialist Aegon has entered an agreement to acquire Clark, a US-based company specializing in corporate-owned and bank-owned life insurance, for approximately $293 million.
Aegon will commence with a cash tender offer for the issued and outstanding shares of Clark for $16.55 per share. The transaction is expected to terminate early in the first quarter of 2007.
Aegon said that this acquisition is in line with its plan to expand into businesses forecast to offer profitable growth and further expand Aegon’s multi-channel distribution capability.
Aegon and Clark have collaborated as strategic partners for many years, with Aegon being Clark’s largest shareholder with 13% stock ownership. Following the purchase of Clark’s remaining stock, a Clark management group will acquire some of the company’s other business segments not considered to be central to Aegon, including Pearl Meyer & Partners, The Federal Policy Group, Healthcare, Medex, Clark Strategic Advisors, Clark Benson and Baden..
The management group plans to form a private company to hold these business segments.
Aegon’s prominence as a large, multi-national organization supports our business objective of expanding services to a greater number of clients, said Tom Wamberg, chairman and CEO of Clark. Clark’s business goals – increasing profits, distribution opportunities, client base, and product and service offerings – are closely aligned with those of Aegon.