The Hartford enters definitive agreement to acquire Navigators Group

The Hartford Financial Services Group Inc. has announced that it has entered into a definitive agreement to acquire The Navigators Group Inc. in an all-cash transaction that values Navigators at approximately $2.1 billion.

The transaction, which was unanimously approved by Navigators’ board of directors, is subject to regulatory and stockholder approvals and other customary closing conditions and is expected to close in the first half of 2019. Completion of the transaction is not subject to any financing conditions.

“Joining The Hartford and leveraging the strength of its balance sheet and quality of its core commercial insurance products, we will create exciting opportunities to deliver enhanced value to our brokers and policyholders,” Stanley A. Galanski, president and CEO of Navigators, said in a statement.

Related: Global insurance M&A rises again in first half of 2018, Clyde & Co. finds

Calling all suitors

The agreement includes a “go-shop” provision designed to afford an opportunity for other potential acquirers to determine whether they are interested in proposing to acquire Navigators. Accordingly, for 30 days Navigators will have an opportunity to solicit competing acquisition proposals. If the board of directors accepts a competing proposal during the “go-shop” period that The Hartford does not match, the successful competing bidder would pay a termination fee to The Hartford.

“We are excited to announce the acquisition of Navigators, which we are confident will achieve key strategic and financial objectives for The Hartford,” Christopher Swift, chairman and CEO of The Hartford, said in a statement. “We are optimistic about our combined growth opportunities and expect the acquisition to generate attractive returns.”

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