Canadian special purpose acquisition corporation (SPAC) Alignvest Acquisition II has agreed to acquire Sagicor Financial, a provider of insurance products and associated financial services in the Caribbean region, for about $536m.
Incorporated in Bermuda, Sagicor is claimed to have an increasing presence in the US as a provider of life insurance products.
Alignvest will carry out the acquisition through a scheme of arrangement, offering a price of $1.75 per each share of the insurance company. The SPAC is owned by Canadian alternative investment management firm Alignvest Management (AMC).
Sagicor, currently operates in 22 countries, and has $6.8bn in assets and $1.3bn in total capital as of 31 December 2017. The company is engaged in providing a variety of products and services, including life, health, and general insurance in addition to some financial products and services.
Sagicor president and CEO Dodridge Miller said: “This transaction is transformational for Sagicor and fully supports our strategic agenda. We have come to work very closely with our partners at Alignvest and believe our combined expertise will continue to accelerate Sagicor’s growth strategy with improved access to capital.
“Our strategic vision remains consistent, and our actions continue to lead us on a path towards being a leading provider of world class insurance and financial services to meet the changing needs of our customers.”
The completion of the scheme of arrangement will be subject to certain conditions and other regulatory approvals. It would also need approval of shareholders of both the parties.
Once all the conditions are satisfied, the deal is likely to be completed in the first quarter or early in the second quarter of 2019.
Alignvest, in a statement, said: “We are partnering with a strong, experienced, well-aligned management team, who want to continue to build their business. Sagicor operates in an industry in which Alignvest has expertise and can be a value-added partner.”
In a separate deal, Alignvest and Sagicor have agreed to acquire the life insurance operations of Canadian global bank Scotiabank in Jamaica and Trinidad & Tobago.
The insurance company has also signed a 20-year exclusive agreement under which it will provide insurance solutions to the clients of Scotiabank in the two Caribbean countries.