Midwest Holding to be acquired by Antarctica Capital

Financial services company Midwest Holding has entered into a definitive merger agreement whereby an affiliate of Antarctica will acquire Midwest in an all-cash transaction valued at approximately $100 million.

Under the terms of the agreement, Midwest shareholders will receive $27.00 in cash per share, representing a 97% premium to the Company’s closing share price on April 28, 2023, and a 75% premium over Midwest’s 30-day volume-weighted average price as of April 28, 2023.

Midwest was formed in 2003 and began its insurance operations in 2009. The company owns American Life, a Nebraska-domiciled life insurance company, Seneca Re, a Vermont-domiciled sponsored captive reinsurance company, and 1505 Capital, an SEC-registered investment advisor. Midwest manufactures and distributes investment and annuity products to retail and institutional investors in partnership with third-party asset managers.

The company ended 2022 with a net income of $7.1 million, compared to a net loss of $16.6 million in 2021.

“This transaction delivers a substantial cash premium to our shareholders while also providing Midwest with the resources necessary to fully capitalize on our platform, business momentum and market opportunity. The Board of Directors and management team conducted a comprehensive review of value creation opportunities, and we are confident this transaction provides a highly attractive outcome for Midwest. We look forward to working with the Antarctica team in this exciting new chapter.” – Georgette Nicholas, CEO of Midwest.

“Midwest is an innovative insurance platform with an impressive team that has built a rapidly growing annuity business. The acquisition of Midwest represents a significant milestone for Antarctica’s insurance strategy. Antarctica brings to Midwest its investment management expertise and asset origination capabilities that will enable Midwest to enhance the value it provides to its policyholders. In addition, we plan on utilizing our platform and existing partnerships to accelerate Midwest’s “capital light strategy” to drive future growth. We look forward to welcoming Midwest to the Antarctica family of companies.” – Chandra Patel, managing partner of Antarctica Capital.

Following closing, Midwest will continue to be led by its current leadership team. In addition, Midwest is expected to maintain its name, personnel, headquarters in Lincoln, Nebraska, and operational hubs in New York and Vermont.