Prosperity Life Group to acquire National Western in $1.9 billion merger deal

National Western Life and Prosperity Life announced a definitive merger agreement.

S. USA Life Insurance Company, Inc. (SUSA), affiliated with Prosperity Life Group, will acquire National Western in a cash transaction valued at roughly $1.9 billion.

Shareholders of National Western will receive $500 in cash for each share they own at the merger’s closing. This represents a significant premium over National Western’s recent stock prices. The merger has been unanimously approved by National Western’s Board of Directors.

The merger is set to finalize in the first half of 2024, pending the approval of National Western’s stockholders, antitrust clearance, and other regulatory approvals. A significant percentage of National Western stockholders have already pledged their support for the merger.

Details of the merger will be filed with the U.S. Securities and Exchange Commission. Funding for the merger will be sourced from internal cash, a capital commitment from affiliates of Elliott Investment Management L.P., and potential borrowings. The merger’s completion isn’t contingent upon Prosperity Life Group securing financing.