The Progressive Corporation acquired ARX Holding Corp. (parent of American Strategic Insurance / ASI) for ~$890.1 million (announced at ~$875M), a transaction completed in April 2015.
Progressive acquired a controlling interest in ARX Holding Corp., parent of American Strategic Insurance (ASI), one of the top 20 U.S. homeowners carriers, to add a home/property product and support its strategy of bundling home and auto in the Agency channel. Under the Stock Purchase Agreement signed December 15, 2014, Progressive bought roughly 63.2% of ARX's stock (plus ~1.0% more from employee/option holders during 2015) primarily from non-management shareholders for a total cost of about $890.1 million in cash, lifting its stake from a passive ~5% held since 2012 to a controlling position (~69.2% by December 31, 2015). The deal produced roughly $470 million of goodwill.
Progressive acquired a controlling interest in ARX Holding Corp., parent of American Strategic Insurance (ASI), one of the top 20 U.S. homeowners carriers, to add a home/property product and support its strategy of bundling home and auto in the Agency channel. Under the Stock Purchase Agreement signed December 15, 2014, Progressive bought roughly 63.2% of ARX's stock (plus ~1.0% more from employee/option holders during 2015) primarily from non-management shareholders for a total cost of about $890.1 million in cash, lifting its stake from a passive ~5% held since 2012 to a controlling position (~69.2% by December 31, 2015). The deal produced roughly $470 million of goodwill.
Progressive is committed to becoming the insurance destination brand for consumers. As such, we need the reliable availability of many more products than we intend to manufacture. ASI provides a significant array of the most important products beyond auto.
Advisory firms were not disclosed for this transaction.