Confirming rumors that started last Thursday, ING, the Dutch financial services group, announced today that it had entered into an agreement to acquire Minneapolis-based ReliaStar, the 8th largest publicly held life insurance company in the U.S., for a total of $6.1 billion.
“The agreement values ReliaStar at $54 per share with a value of approximately $5.1 billion and $1 billion in debt. The transaction is expected to close late 3rd quarter of 2000, and is subject to regulatory and ReliaStar shareholder approval,” the announcement said.
ING plans no immediate changes in management. “ReliaStar will continue its operations as part of ING Americas [ING’s U.S. subsidiary] under the name ING (lion) ReliaStar and retain current management,” it said. John Turner, ReliaStar CEO, will become a member of the Executive Committee of ING Americas, which is headed by Fred Hubbell.
The purchase of ReliaStar fulfills one of ING’s longstanding goals, to acquire a major U.S. insurer and to increase its presence in the all important U.S.market. Its overall market share from the sale of life, annuity and health insurance combined with mutual fund and asset management activities will rank ING as the 8th largest U.S. life insurer with $12.4 billion in premium income and $75 billion under management.
It will also create the largest independent broker/dealer network in the U.S., combining ING’s 3,800 registered representatives with ReliaStar’s 4,000.
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