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Kemper To Buy Infinity Property And Casualty

Kemper Corp. (KMPR) has agreed to buy Infinity Property and Casualty Corp. (IPCC) for about $1.4 billion in a cash and stock transaction.

The transaction creates a company with increased scale in nonstandard auto insurance and enhanced ability to serve policyholders. Infinity is a provider of auto insurance focused on serving the specialty, nonstandard segment.

Infinity shareholders will receive $51.60 in cash and 1.2019 Kemper shares for each share of Infinity common stock.

Kemper expects to fund the cash portion of deal using cash on hand from the combined companies and other internal resources. The deal is expected to close in the third quarter of 2018, subject to regulatory and other approvals.

"This compelling transaction combines two well-known brands with complementary strengths and cultures to form a leader in nonstandard auto insurance, and enhances Kemper's overall growth opportunities, diversification, financial strength, and ability to serve policyholders," said Joseph Lacher, Jr., Kemper's President and Chief Executive Officer.

Glen Godwin, Infinity Chief Executive Officer, added, "Together, our two companies have a terrific strategic and cultural fit. As part of a larger company, Infinity will have access to the capabilities and resources necessary to drive accelerated growth and better serve our policyholders and partner agents. In addition, Infinity shareholders will benefit from immediate and certain value for their shares as well as the opportunity to participate in the significant upside potential of the combined company."

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