Protective Insurance Corporation (NASDAQ: PTVCA and PTVCB)has disclosed that it has signed an acquisition pact with The Progressive Corporation (NASDAQ: PGR). Following the agreement, The Progressive Corporation will buy Protective Insurance for nearly $338 million. All of the outstanding Class A and B shares of Protective will be purchased by PGR for $23.30 per share in cash.
The purchase of PTVCA and PTVCB will be finalized before the end of Q3 of 2021. The execution of the contract is dependent on certain closing conditions and the authorization of class A shareholders of Protective and other regulatory permissions. The Board of Directors of Protective has mutually decided to agree to this offer.
The holders of 35% of Protective's outstanding Class A common stock had earlier signed a contingent sale pact discontinued their commitments to finalize the deals following that arrangement and entered into a voting deal with Protective and PGR to decide the sale of the PTVCA and PTVCB to PGR.
Furthermore, The Special Committee of the Board has considered the best possible solutions for the Protective in this deal. This deal will offer Protective the chances to grow in the future and also receive the cash payment. This is the greatest accomplishment in the history of PTVCA and PTVCB. PGR and PTVCA and PTVCB both shared the same vision to offer the best to consumers.
Additionally, it has been disclosed that Progressive will finance the buying through liquid funds on hand. The per-share price signifies a 49.1% payment and 63.2% payment. Progressive is also intending to retain the offices of Protective in Carmel, Indiana, and maintain the workers of Protective. PGR is looking ahead to work with the team of PTVCA and PTVCB and leverage the capabilities of the firm they bring to the company.