$1.84 billion deal for Fidelity & Guaranty Life revealed

All-cash deal for firm revealed earlier today, just a month after previous agreement collapsed

$1.84 billion deal for Fidelity & Guaranty Life revealed

Insurance News

By Paul Lucas

It’s barely been a month since Fidelity & Guaranty Life revealed that an agreement with Anbang Insurance had collapsed – and now another firm has swooped.

Revealed earlier today, CF Corp, which was founded by veteran dealmaker Chinh Chu, will purchase Fidelity & Guaranty Life in what it states is an all-cash deal valued at around $1.84 billion.

A Reuters report claims that CF Corp has bid$31.10 per share for FGL – that’s an 8.4% premium compared to its share value at the close on Tuesday of $28.70.

So who is this new buyer?

CF Corp went public in May last year and is a company with no assets – it instead raises money via an IPO which it can use to buy companies. Its investors include the likes of Chinh Chu and William Foley. Funds affiliated with Fidelity National Financial and Blackstone Group will also be used to fund the deal with Chu having ended his 25-year career at Blackstone last year, and Foley being the non-executive chairman at Fidelity National.

It is expected that, subject to regulatory and shareholder approvals, the deal will close during the fourth quarter this year.

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