Co-operators Financial Services Limited, a wholly owned subsidiary of The Co-operators Group Limited, has entered into an agreement to acquire all of the issued and outstanding shares of Smart Employee Benefits Inc. (SEB), an insurtech company focused on benefits administration technology.
SEB’s benefits processing software and services are used in the life and group benefits marketplace and by governments. The firm says it manages business processes for more than 150 blue chip company and government accounts nationally and globally. “SEB designs, customizes, builds and manages mission critical, end-to-end technology, people and infrastructure solutions using SEB’s proprietary technologies and expertise and partner technologies,” they state in an announcement about the acquisition.
Under the agreement, Co-operators will acquire the shares at a purchase price of $0.30 per share, “representing a total equity value of approximately $89.1-million,” they say. “The purchase price represents a 76.5 per cent premium to the closing price of SEB common shares on Dec. 30, 2022 and an 80.9 per cent premium to the 20-day volume weighted average closing price as of the end of trading on December 30.”
The transaction, expected to close in the first quarter of 2023, was unanimously approved of by the Co-operators’ board of directors and the SEB board of directors who “unanimously determined that the transaction is in the best interest of SEB and fair to SEB shareholders.”
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