Endurance Specialty To Buy Montpelier Re In $1.83 Billion Deal

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Endurance Specialty Holdings Ltd. said Tuesday it has agreed to acquire Montpelier Re Holdings Ltd. in a deal valued at $1.83 billion. Endurance said it will pay 0.472 shares and $9.89 in cash for each Montpelier share, equal to $40.24 per share, or a 19% premium over Montpelier's closing price on March 30. The deal is expected to close in the third quarter. "we expect to achieve meaningful transaction synergies through cost savings and greater capital efficiencies," Chief Executive John Charman said in a statement. "Importantly, the acquisition materially increases our breadth of distribution with the addition of a good-sized and scalable Lloyd's platform and an attractive property catastrophe business that complements our existing reinsurance portfolio." Endurance shares were not yet active in premarket trade, but are up 7.5% in the year so far. Montpelier shares have gained 6.5% in the year so far, while the S&P 500 has gained 1.3%.

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