Underwriting firm The National Security Group, Inc (NSG) has completed the previously announced merger with Delaware-based corporation VR Insurance Holdings.
Back in January, plans to merge the companies were announced. Under the terms of the deal, each share of NSG common stock has been converted into the right to receive cash in the amount of $16.35.
According to the announcement, following closing, it is anticipated that VR Insurance Holdings will continue to leverage the existing operations and infrastructure of NSG’s wholly owned property and casualty and life insurance subsidiaries.
The total transaction value of the merger is approximately $41.4 million.
As a result of this transaction, NSG’s common stock will cease to trade on NASDAQ after the close of business on 30 June, and will thereafter be delisted.
VR Insurance Holdings is a newly formed Delaware company founded by Vivek Ranadivé, BTIG and a group of family offices and strategic investors. Mr. Ranadivé has been the Founder and Managing Director of Bow Capital Management LLC and its affiliated funds since 2016 and Chairman, Chief Executive Officer and Governor of the Sacramento Kings since 2013.
Ross Aron, Chief Executive Officer of VR Holdings, commented: “NSG’s 75 years of underwriting and commitment to policyholders combined with the additional financial resources, investment and technology expertise from the partners of VR will provide NSG the opportunity to further strengthen its position in the industry.”
Ross Aron will serve as the Chief Executive Officer of VR Holdings and all of its subsidiaries while Brian McLeod will serve as the Chief Financial Officer of VR Holdings and all of its subsidiaries. Mr. McLeod will also serve as Chief Operating Officer of the insurance subsidiaries.
Stockholders whose shares are held by a broker or in direct registration will be paid automatically.
While those NSG stockholders who hold all or some of their shares in stock certificates will receive instructions by mail for surrendering their shares in order to receive payment, according to the announcement.
In a statement, William L. Brunson, Jr., CEO of NSG, said: “By combining our 75-year history of stability, underwriting expertise and commitment to our policyholders with the financial resources of the investor group led by Mr. Ranadivé, we expect to realise greater opportunities for growth and an enhanced ability to serve our policyholders and agent partners.”
