Business
Arch Capital Group Ltd. to Acquire Watford Holdings Ltd. for $31.10 per Common Share in All-Cash Transaction
Transaction Provides Certainty and Speed of Execution for Watford Shareholders Ensures Continuity of Product and Service for Watford Policyholders PEMBROKE,
About this update from Arch Capital Group Ltd.
[{"type":"text","content":"\nTransaction Provides Certainty and Speed of Execution for Watford Shareholders \n\nEnsures Continuity of Product and Service for Watford Policyholders\n\n PEMBROKE, Bermuda--(BUSINESS WIRE)--\nArch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or “the Company”) and Watford Holdings Ltd. (NASDAQ: WTRE) (“Watford”) today announced they have entered into a definitive agreement under which Arch will acquire all the common shares of Watford in an all-cash transaction valued at approximately $622 million. Following closing, which is expected to occur in the first quarter of 2021, Watford will continue to operate as a standalone business and remain consolidated within Arch’s financials.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201009005297/en/\nUnder the terms of the agreement, Watford shareholders will receive $31.10 in cash for each Watford common share they hold. This consideration represents a premium of approximately 74% to Watford’s unaffected closing common share price on September 8, 2020, the last trading day prior to media reports about the possibility of a transaction between Watford and Arch. Watford's 8.5% cumulative redeemable preference shares (NASDAQ: WTREP) will remain outstanding and will be entitled to the same dividend and other rights and preferences as are now provided to the preference shares.\n\nThe independent members of Watford’s Board of Directors have unanimously approved the agreement and recommended that Watford’s shareholders vote in favor of the transaction. The agreement requires approval by holders of the majority of Watford’s outstanding shares. Arch, which currently owns approximately 13% of Watford’s outstanding shares, has committed to vote in favor of the transaction. In addition, Arch’s directors and executive officers own approximately 2% of Watford’s outstanding shares.\n\n“This represents a clear path forward for Watford, while also delivering an attractive premium to shareholders in a transaction with a high degree of certainty to close,” said Jon Levy, Watford’s President and Chief Executive Officer. “We believe that Watford will be better positioned as a standalone business within Arch to execute its strategic priorities and growth plans. Importantly, we expect a seamless transition for our clients, trading partners and poli...