iA Financial Corporation has concluded its acquisition of IAS Parent Holdings and its subsidiaries.

The purchase price of US$720 million has been funded by iA Financial Group’s excess capital; a currency hedge was put in place for the amount.

IAS, based in Austin, TX, is one of the largest independent providers of vehicle warranty solutions in America, having been in business for more than 35 years. The firm offers a comprehensive portfolio of vehicle warranties, as well as related software and services – all sold through a distribution network comprised of over 4,300 dealers in all fifty states.

"We are pleased to announce the completion of the acquisition of IAS and to welcome its high-quality management team within iA Financial Group," said its president and CEO Denis Ricard.

Ricard added that by combining IAS’ complementary strengths and iA Financial’s existing warranty business in the US, “we will be well positioned for the growth opportunities that may arise in this highly fragmented market."

"I am proud of our entire team and their hard work and growth over the last few years," commented IAS president and CEO Patrick Brown. "With the strength and resources of iA, we look forward to continuing to grow and providing the best products and services in the industry to our long-standing partners and customers.”

iA Financial Group said that following its purchase of IAS and the sale of iA Investment Counsel – expected to close sometime during Q2 2020 – it would maintain a “sound capital position” with a pro forma solvency ratio as of March 31, 2020 of 121%, above its target range of 110 to 116%.