Shares of Protective Insurance (NASDAQ: PTVCA and PTVCB) are on the rise on Tuesday after announcing that Progressive Corporation (NYSE: PGR) has agreed to acquire the company for $23.30 per share or $338 million in total.
Insurance firm, Progressive, will fund the purchase through liquid investments on hand with the per-share price representing a 49.1% premium and 63.2% premium respectively to Protectives unaffected 30-day volume-weighted average Class A and Class B share prices measured on the 12th of February 2021.
Progressive said it plans to maintain Protective’s offices in Carmel, Indiana and retain its employees.
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“With Progressive’s scale and resources, we expect to deliver greater value to our policyholders, while continuing to provide the exceptional service they have come to expect from us. Progressive shares our commitment to excellence in serving customers, and we are confident they are the ideal owner for Protective,” Said Jeremy Johnson protective chief executive officer.
Protective’s stock price is trading at $22.94 up 52.3% following the announcement while Progressive’s shares are little moved, down 0.63% at $85.73.