Validus has agreed to purchase Western World Insurance Group, a New Jersey-based specialty lines insurance company, in a transaction valued at nearly $690m in cash.


Upon completion of takeover, Validus plans to manage Western World as a standalone business within Validus headed by its current management team.

Commenting on the transaction, Validus chairman and CEO said Ed Noonan: "I am very pleased to welcome Western World to the Validus Group and am excited about the potential of combining these two companies."

"Bringing together Validus, a leader in the short-tail insurance and reinsurance market, and Western World, with its excellent U.S. distribution platform, outstanding management and industry leading technology, creates a franchise that will provide compelling products and services for our customers."

In accordance with the terms of the deal, Western World’s owners will get $690m in cash in exchange for 100% of the company’s outstanding stock.

The deal is expected to close on or about the end of the third quarter of 2014 following regulatory approvals and satisfaction of other customary closing conditions.

Western World CEO Tom Mulligan commented: "Joining Validus is a great outcome for Western World. Validus brings capital and expertise in short tail classes of business which will advance the competitive advantages in all of our underwriting divisions."

Greenhill & Co is serving as financial advisor to Validus while Skadden, Arps, Slate, Meagher & Flom as legal counsel. For Western World, Goldman, Sachs & Co is acting as financial advisor and Sullivan & Cromwell and Morrison Cohen as legal counsel.
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