Quanta Capital Holdings, a company engaged in specialty insurance and reinsurance business, has entered into a definitive amalgamation agreement with Catalina Holdings Bermuda and Catalina Alpha. Pursuant to the amalgamation agreement, Catalina will acquire Quanta in a transaction valued at approximately $197 million.

At the closing of the proposed amalgamation, holders of the common shares of Quanta will receive $2.80 per share in cash.

Completion of the transaction is contingent upon customary closing conditions, including the approvals of the common shareholders of Quanta, as well as various regulatory approvals and notices. There is no financing contingency to the transaction. The transaction is expected to close in the last quarter of 2008.

In connection with the transaction, Friedman, Billings, Ramsey is acting as Quanta’s financial advisor and Baker & McKenzie is acting as Quanta’s legal advisor. Morgan Stanley and Allen & Overy advised Catalina on the transaction.

Chris Fagan, CEO of Catalina, said: We are pleased to have entered into a definitive agreement to acquire Quanta and we look forward to working with Quanta’s employees and management to achieve a successful run off. This is an important acquisition for Catalina following the significant expansion of our capital base last year.