The Progressive, an auto insurer based in Ohio, has signed a definitive agreement to purchase trucking-focused Carmel, Indiana-based insurer Protective Insurance in a cash deal worth around $338m.

Under the agreement, Progressive will buy all of the outstanding Class A and Class B common shares of Protective for $23 apiece. Progressive will finance the deal through its available liquid investments.

Protective’s Carmel offices will be maintained. As part of the deal, Protective staff will move to Progressive.

Protective CEO Jeremy Johnson called the deal a “milestone” in its history.

Johnson said: “With Progressive’s scale and resources, we expect to deliver greater value to our policyholders, while continuing to provide the exceptional service they have come to expect from us.

“Progressive shares our commitment to excellence in serving customers, and we are confident they are the ideal owner for Protective.”

The deal has already been cleared by Protective’s board. It now awaits regulatory and shareholders’ approvals.

Protective shareholders owning around 35% of the target’s outstanding class A common shares that earlier inked a contingent sale agreement terminated their obligations to close the transactions under that agreement. They also signed a voting agreement to support the sale to Progressive.

Deal completion is anticipated in the third quarter of 2021.

Progressive Commercial Lines president Karen Bailo. “Our Commercial Lines business provides one of our greatest opportunities to expand our addressable market and grow.

“This move allows us to add products that will help us support larger fleets and brings expertise in workers’ compensation coverage for the transportation industry, which are new areas of business for us and can help us to meet the needs of our commercial customers.”

Recently, USI Insurance Services acquired Washington-based Inland Insurance, expanding its footprint in the northwest US.

Moreover, US-based life and health insurance distributor Integrity Marketing Group recently snapped up brokerage general agency Advisors Insurance Brokers (AIB).