Lincoln National Corporation announced it has agreed to purchase Jefferson-Pilot Corporation in a deal valued at about $7.5 billion.[@@]
The agreement was unanimously approved by both companies' boards of directors.
If approved by their shareholders, both companies expect to complete the deal in the first quarter of 2006.
The combined companies would operate under the name Lincoln Financial Group, offering life insurance, annuities, and retirement and investment products and services as well as a variety of group benefits.
Based on the average stock market price for the past month, Lincoln National, Philadelphia, will pay an 11% premium for Jefferson Pilot, Greensboro, N. C.
Jefferson Pilot shareholders will receive about 1 Lincoln share or $55.96 in cash for each Jefferson Pilot share. The total cash payment to Jefferson Pilot shareholders will equal $1.8 billion, based on Lincoln Financial's Oct. 7 closing price of $55.48 per share.
The combined company would be ranked first in the industry for universal life product sales and would be a significant presence in the life insurance market.
In group benefits the combined company would be number 8 in group disability sales, number 13 in group life sales and number 6 among publicly traded insurers in defined contribution and retirement plan assets.
