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(Reuters) -The Doctors Company, a medical malpractice insurer, said on Wednesday that it has entered into an agreement to take ProAssurance private in a deal worth about $1.3 billion.
Shares of ProAssurance surged 51.2% to $23.50 in aftermarket trading.
ProAssurance is a specialty insurer, providing coverage in medical liability, products liability for medical technology and life sciences companies, as well as workers' compensation insurance.
The transaction is expected to close in the first half of 2026, and upon closing, ProAssurance will no longer be listed on the New York Stock Exchange and will become a wholly owned subsidiary of The Doctors Company.
Under the terms of the agreement, ProAssurance shareholders will receive $25.00 per share in cash, representing a premium of 60.9% to its last closing price.
The combined company will have assets of about $12 billion, the companies said.
(Reporting by Sneha S K; Editing by Mohammed Safi Shamsi)