Markel Corporation, a US based financial holding company, has completed purchasing Bermuda-based Alterra Capital in a deal valued at nearly $3.13bn in a cash and stock deal.
Originally signed on 19 December 2012, the transaction was completed following the receipt of all necessary regulatory approvals and votes in favor of the acquisition by the shareholders of the two firms in February.
As per the terms of the deal, current shareholders of Markel will own nearly 69% of the integrated entity on a fully diluted basis, with Alterra's shareholders managing nearly 31%.
Markel chairman and chief executive officer Alan I Kirshner said that the combination of Alterra with Markel will create a strong company in global specialty insurance and investments, which will also be beneficial for all of its stakeholders.
"With our enhanced scale, approximately $23 billion in combined assets and $6 billion in shareholders' equity, we believe we will be well positioned to take advantage of a wide range of profitable opportunities in insurance and investments," Kirshner added.
The transaction will expand the acquirer's product offerings and its geographic reach, while enabling it to better serve its customers.
He further stressed that the company will add two new businesses, including Markel Global Insurance and Markel Global Reinsurance, and the management team and employees of the acquired business will join existing Markel Specialty, Markel Wholesale and Markel International units.
Citigroup and BofA Merrill Lynch served as financial advisor to Markel and Alterra, respectively, while Debevoise & Plimpton and Appleby as well as Akin Gump Strauss Hauer & Feld and Conyers Dill & Pearman acted as legal counsel.
Serving a variety of niche markets, Markel's principal business markets and underwrites specialty insurance products.
