US veterinary medical insurer, Pethealth has inked an asset purchase agreement to acquire certain assets of PurinaCare Insurance Services' pet insurance operations.
The agreement was signed between Pethealth's subsidiary PTZ Insurance Agency, Nestlé Purina Claims Processing and PurinaCare Insurance Services.
Having a maximum value of US$800,000 for approximately 12,000 current policyholders, the all-cash transaction covers insurance operations relating to administration of Purina's pet insurance program and rights to the subsequent policyholder renewals.
The transaction is being funded through a three year loan agreement with a recognized financial institution at a fixed interest rate of 6 month LIBOR plus 2.25%.
Subjected to customary closing conditions, the acquisition is expected to complete on or before 01 May 2013.
Pethealth is North America's second largest provider of medical insurance for dogs and cats to pet owners, operating in the US, Canada and the UK.
