A holding company formed by the owner of the Sacramento Kings basketball team has agreed to purchase National Security Group Inc., an Alabama-based specialty underwriter of property, casualty and life insurance, for $41 million.
VR Insurance Holdings Inc. said in a news release that it had agreed to acquire outstanding common shares of NSG for $16.35 a share, a 77% premium over the Jan. 25 closing price. VR Holdings is a recently formed holding company founded by Vivek Ranadive, a founder of Bow Capital Management and owner and chairman of the Kings NBA team since 2013.
The agreement requires approval by holders of the majority of NSG’s outstanding common shares, but is expected to close by the end of the second quarter of 2022, the VR statement said.
National Security, founded in Elba, Alabama, in 1947, operates National Security Insurance Co. and National Security Fire & Casualty Co. Chief Financial Officer Brian McLeod will now serve as chief operating officer of the insurance subsidiaries and will also be named VR Holdings’ chief financial officer. NSG will now be a private company, backed by capital to accelerate expansion plans, the companies said.
Ranadive made his mark in the 1980s when he developed software for financial trading floors. He then spun out TibCo, a widely used software system, which sold for $4.3 billion in 2014, according to the news release.
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