Industrial Alliance Insurance and Financial Services Inc. has agreed to acquire the outstanding shares of American-Amicable Holding Inc. for about $144 million in cash, including about $45 million in excess capital.

Industrial Alliance, Quebec City, Quebec (TSX:IAG), says the deal will be financed from cash on hand through its U.S. subsidiary, IA American Life Insurance Company, Scottsdale, Ariz.

Industrial Alliance is hoping to complete the deal this summer.

Acquiring American-Amicable, Waco, Texas, will give Industrial Alliance a stable stream of revenues and profits, a low-risk investment portfolio, a strong distribution system and an experienced management lineup, according to Industrial Alliance President Yvon Charest.

“Its life insurance products target the middle-income market, which is under-served and offers significant growth opportunities,” Charest says in a statement.

American-Amicable has four main operating units: Pioneer Security Life Insurance Company, American-Amicable Life Insurance Company of Texas, Pioneer American Insurance Company and Occidental Life Insurance Company of North Carolina.

The company has 115 employees and a network of 6,000 agents. It focuses on selling traditional individual life insurance and final-expense products in the Southwestern and Southeastern states.

The company generated $86 million in premium revenue in 2009 on $687 million in assets, with $7.1 billion of life insurance in force on 211,500 lives.

Industrial Alliance says IA American will keep the American-Amicable offices and employees in Waco as well as the existing IA American offices and employees in Scottsdale.