New Jersey-based specialty Insurer ProSight Global is set to be acquired by investment management firm TowerBrook Capital Partners and private equity firm Further Global Capital Management in a deal valued at $586m.
According to the agreement, TowerBrook will obtain a majority stake in ProSight, while Further Global will serve as a key minority co-investor.
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As part of the agreement, stockholders of ProSight will receive $12.85 for each share of common stock.
The merger agreement was recommended by a special committee of the ProSight Board of Directors and was approved by ProSight’s full board.
The transaction, subject to customary closing conditions, is expected to close in the third quarter of this year.
Upon the closure of the deal, ProSight president and CEO Larry Hannon will continue to serve as president while Jonathan Ritz will take over as CEO.
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By GlobalDataRitz, who previously served as the president of Aspen Insurance, has also worked as chief operating officer of Validus Holdings and as CEO of Validus Specialty before.
Ritz said: “Increased frequency and magnitude of natural catastrophes, social inflation, and the COVID-19 crisis have contributed to substantial market dislocations, and ProSight represents a quality platform that is well-positioned to capitalise on this environment.
“I am looking forward to working with the Company’s many talented underwriters, employees, and distribution partners to build a market-leading specialty insurance company.”
Commenting on the deal, Hannon added: “This transaction and the new partnership with TowerBrook and Further Global will expand ProSight’s underwriting capabilities and fund investments in talent and technology that will improve our offerings to distribution partners and customers.”
Established in 2009, ProSight writes a range of admitted and non-admitted specialty lines of business in the US.
The company’s fully licensed turnkey platform is said to have significant franchise value in its core niches.
TowerBrook and Further Global plans to work with ProSight’s management team to further develop a specialty insurance franchise.
