Under the deal, shareholders of National General NGHC, a New York-based specialty personal-lines insurer, will receive a total of $34.50 a share, an offer that comprises $32.00 a share from Allstate ALL, and expected closing dividends of $2.50 a share, the companies said late Tuesday. The total offer represents a 69% premium to the stock’s last-traded price. Allstate, a top issuer of auto and home insurance policies, will fund the deal with $2.2 billion in cash resources and by issuing $1.5 billion in new senior debt. National General’s board has approved the transaction, which includes a breakup fee of $132.5 million. The companies said the deal is expected to close early next year, subject to regulatory approvals. The acquisition “accelerates Allstate’s strategy to increase market share in personal property-liability and significantly expands our independent agent distribution,” said Tom Wilson, chairman and chief executive of Allstate, which is based in Northbrook, Ill.

https://www.marketwatch.com/story/allstate-to-buy-rival-insurer-national-general-for-4-billion-2020-07-08-91032152