Vericity to be acquired by iA Financial for $170M

Vericity announced it has entered into a definitive merger agreement whereby iA American Holdings, a subsidiary of iA Financial Corporation will acquire Vericity in an all-cash transaction valued at approximately $170M. Vericity is majority owned by J.C. Flowers & Co. Vericity’s board of directors unanimously approved the merger agreement. As part of the agreement, each issued and outstanding share of the total 14,875,000 shares of Vericity common stock will be converted into the right to receive $11.43 in cash at closing of the merger, funded by iA with existing cash on hand. The per share merger consideration represents a 101% premium to Vericity’s closing share price of $5.70 on October 2, the last full trading day prior to the announcement of the transaction. The transaction is not subject to any financing condition or contingency. The merger is expected to close in the first half of 2024. It is subject to certain customary closing conditions for a transaction of this type, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and receipt of insurance regulatory approvals. Following the execution of the merger agreement, stockholders representing more than a majority of the issued and outstanding shares of Vericity common stock delivered a stockholder written consent adopting and approving the merger agreement.