Stock Alert: National General Up 65%, To Be Acquired By Allstate For $4 Bln

(RTTNews) - Shares of National General (NGHC) surged 65% on Wednesday morning on news that the company would be acquired by insurance giant Allstate for $4 billion.

NGHC is currently trading at $33.61, up $13.20 or 64.67%, on the Nasdaq.

Allstate expects to close the transaction in early 2021, and expects the deal to be accretive to adjusted net income earnings per share and return on equity beginning in the first year.

As per the deal, National General shareholders will receive $32.00 per share in cash, plus closing dividends expected to be $2.50 per share, providing $34.50 in total value per share.

Allstate will fund the deal with $2.2 billion in cash resources and by issuing $1.5 billion in new senior debt.