The Doctors Co. announced it will acquire FPIC Insurance Group Inc. a Florida-based provider of medical professional liability insurance for physicians, dentists, and other healthcare providers. The Doctors Co. will acquire FPIC for $42 per share in cash, representing an aggregate purchase price of approximately $362 million. The $42 per share price represents a premium of approximately 31 percent over the $32.10 per share closing price of FPIC on May 23, 2011, the last trading day prior to the acquisition announcement
FPIC’s 18,000 insureds will be transferred to The Doctors Co. With this merger, The Doctors Co. will enhance its position as the nation’s leading insurer of physician and surgeon medical liability with more than 70,000 members, the companies said.
The board of directors of FPIC has unanimously approved the transaction and has resolved to recommend that its shareholders approve the merger agreement. The transaction is expected to close by the fourth quarter of 2011 and is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the holders of a majority of the outstanding shares of FPIC common stock.
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