The Doctors Co., a medical liability insurer in Napa, Calif., plans to acquire FPIC Insurance Group for about $362 million in cash.
Doctors Co. to buy FPIC Insurance
FPIC, of Jacksonville, Fla., has 18,000 policyholders of medical professional liability insurance in 14 states, including Florida, Texas, Georgia and Arkansas, and is licensed to write policies in 32 states. The Doctors Co. has nearly 55,000 member physicians and $4 billion in assets, according to the company.
The deal was approved by FPIC's board of directors and will require shareholder and customary regulatory approvals. The transaction is expected to close by the fourth quarter of this year, according to a news release from FPIC.
According to the deal's announced terms, the Doctors Co. will buy FPIC for $42 per share in the all-cash transaction—31% over the share closing price on May 23.
"This transaction will deliver significant value to our shareholders and place our organization with one of the largest and most respected medical professional liability insurance organizations in the nation," FPIC President and CEO John Byers said in the release.
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