Expected to leverage the strengths of both the organizations
First Professionals Insurance, a subsidiary of FPIC Insurance Group, a provider of medical professional liability insurance for healthcare firms, has completed the acquisition of all of the outstanding capital stock of Advocate, MD and its subsidiaries.
Under the terms of the previously announced agreement, FPIC paid total consideration of $33.6m at closing, and may pay up to $12m in additional consideration depending on the performance of Advocate, MD during the two-year period following closing. In connection with the transaction, FPIC also retired all of Advocate MD’s outstanding bank debt, totaling $9m.
John Byers, president and CEO of FPIC, said: “We are very pleased to announce the completion of the transaction, and we are looking forward to Advocate, MD being an important part of our combined organization. This transaction provides meaningful benefits to both organizations and is consistent with our long-term business strategy.”
Mark Adams, president and CEO of Advocate, MD, said: “We are excited about joining FPIC and look forward to leveraging the strengths of both organizations. Our team is fully committed to continuing Advocate, MD’s strong performance and contributing to the success of the combined organization.”