The shareholders of Carmel-based Protective Insurance Corp. (Nasdaq: PTVCA and PTVCB) have approved a merger agreement with Progressive Corp. (NYSE: PGR) in Ohio. The deal, valued at $338 million, was first announced in February and still requires regulatory approval.
As part of the agreement, Progressive will acquire all outstanding Class A and Class B shares of Protective’s common stock for $23.30 per share in cash. The deal has already been approved by the Protective board of directors.
“We thank Protective shareholders for their strong support of our value enhancing transaction with Progressive, which we believe is in the best interest of Protective and all of our stakeholders,” Jeremy Johnson, chief executive officer for Protective Insurance, said in a news release. “This shareholder approval is an important milestone as we work to join the Progressive family and deliver innovative offerings and superior customer service to even more customers across the country.”
Progressive says the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act has expired. However, the acquisition still requires approval from the Indiana Department of Insurance, as well as other customary closing conditions.
The deal is expected to close in June or July. When the acquisition was first announced, Progressive said it plans to maintain Protective’s offices in Carmel and retain its employees.
Meanwhile, Protective Insurance is reporting first quarter net income of $12.9 million, compared to a net loss of $22.2 million during the same period last year. Johnson says the company is now “well down the path to sustainable profitability.”
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