Markel Corp. (NYSE: MKL) will acquire Alterra Capital Holdings Ltd. (Nasdaq: ALTE, BSX: ALTE.BH) for about $3.13 billion as part of a merger agreement.
The purchase price works out to $31 per share. After the merger, Markel shareholders will own about 69 percent of the combined company and Alterra’s shareholders will have about 31 percent. Alterra's shares closed at $23.15 on Dec. 18 and opened at $29.55 after the deal was announced.
Alterra provides specialty insurance and reinsurance to corporations, public entities and property and casualty insurers.
Markel underwrites specialty insurance.
Citigroup acted as Markel’s financial adviser, while Debevoise & Plimpton LLC and Appleby’s acted as legal counsel. Bank of America Merrill Lynch was Alterra’s financial adviser, and Akin Gump Strauss Hauer & Feld LLP and Conyers Dill & Pearman were legal counsel.
Insurance M&A has racked up several deals recently, including Delaware Life Holdings' purchase of Sun Life Financial's (TSX: SLF, NYSE: SLF) annuity and life insurance business, and Confie Seguros' acquisition of four insurance companies.