Canadian underwriter Great-West Lifeco has inked an agreement with the government of Ireland to purchase Irish Life Group for $1.75bn (€1.3bn) and $1.25bn subscription receipts offering for common stock.

Following the completion of the transaction, the acquired company will be integrated with its subsidiary Canada Life (Ireland), while it will retain its brand name Irish Life.

The acquisition of Irish Life, which was established in 1939, will boost the acquirer’s business footprint in Europe as well as globally.

Operating as one of the largest life and pensions group and investment manager in Ireland, the acquired business serves over one million customers and €37bn (C$50bn) of assets under management.

Subject to customary closing conditions and regulatory approvals, including approvals from the European Commission under the EU Merger Regulation, the transaction is likely to complete in July 2013.

Founded in 1903, Canada Life offers life insurance, pension and investment services, to more than 150,000 customers.

Great-West Lifeco operates as a holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses and has operations in Canada, the US, Europe and Asia.