National Western Life Group and Prosperity Life Group recently announced the signing of a definitive Merger Agreement whereby S. USA Life Insurance Company, Inc. (SUSA), an affiliate of Prosperity Life Group, will acquire National Western in an all-cash transaction valued at approximately $1.9 billion. As part of the deal, each issued and outstanding share of National Western common stock will be converted into the right to receive $500 in cash at the merger’s closing.
The merger consideration of $500 per share of National Western’s Class A Common Stock and Class B Common Stock represents an 87.1% premium to the unaffected Class A Common Stock share price of $267.29 on May 16, 2023, as well as an 11.8% premium over National Western’s 30-day volume-weighted average price as of October 6, 2023. This merger has received the unanimous approval of National Western’s Board of Directors.
This merger is expected to close in the first half of 2024. And it is subject to certain customary closing conditions for a transaction of this type.
KEY QUOTES:
“The acquisition of National Western represents a significant milestone in the continued expansion of our insurance business. We look forward to welcoming National Western to Prosperity Life Group. National Western’s capabilities will further complement our ambition to deliver a compelling value proposition to our policyholders and the company.”
- Nicholas von Moltke, President and Chief Executive Officer of Prosperity Life Group
“This is an exciting moment in National Western’s history. I would like to thank our board of directors, particularly our strategic opportunities committee of independent directors, which conducted a thorough review of a range of strategic alternatives and possible business opportunities to maximize value for our stockholders. The transaction provides clear and immediate value for our stockholders at an attractive premium.”
- Ross R. Moody, Chairman of the Board and Chief Executive Officer of National Western
