Medical Professional Mutual Insurance Company (ProMutual) has entered into a definitive agreement with FinCor Holdings (FinCor), a medical liability insurer and integrated risk management firm. As per the deal, ProMutual will acquire FinCor and its subsidiaries. The acquisition is expected to complete by third quarter of 2009.
As per the terns of the agreement, ProMutual will acquire FinCor and subsidiaries – MHA Insurance Company, Washington Casualty Company, FinCor Solutions, Risk Management and Patient Safety Institute, and Capital Risk Solutions SPC.
Post acquisition, ProMutual is expected to operate FinCor as its independent subsidiary. The company is likely to retain the FinCor-affiliate brands and FinCor’s employees.
Richard Brewer, CEO of ProMutual Group, said: “The acquisition of FinCor not only complements our geographic service area, but will also bolster our strength and presence in the hospital marketplace.
“The synergies represented in this transaction are substantial. The companies have no geographic redundancy, and both bring specialized underwriting strength and clinical risk management experience to their respective markets,” he added.
Following the acquisition, shareholders are entitled to receive cash of $164 million.
The transaction is subject to certain conditions, including regulatory approvals and approval of the merger plan by the FinCor shareholders.