CF Corp. To Buy Fidelity & Guaranty Life For $31.10/shr - Quick Facts

(RTTNews) - CF Corp. (CFCO) and Fidelity & Guaranty Life (FGL) announced their boards have each unanimously approved a definitive merger agreement under which CF Corp. will acquire FGL for $31.10 per share in cash, or a total of approximately $1.835 billion, plus the assumption of $405 million of existing debt.

Fidelity & Guaranty Life, an insurance holding company, helps middle-income Americans prepare for retirement. Through its subsidiaries, the company offers fixed annuity and life insurance products distributed by independent agents through an established network of independent marketing organizations. Fidelity & Guaranty Life is headquartered in Des Moines, Iowa.

The transaction will be financed with $1.2 billion from CF Corp.'s IPO and forward purchase agreements, and more than $700 million in additional new common and preferred equity. The investor group, which includes the founders of CF Corp., Chinh Chu, and William Foley, II, funds affiliated with Blackstone (BX), and Fidelity National Financial (FNF), will invest approximately $900 million in common and preferred equity to fund the transaction.

In connection with the transaction, CF Corp. and HRG Group, Inc. (HRG), FGL's largest shareholder, have approved a purchase agreement under which CF Corp. will acquire certain reinsurance companies from HRG.