Buckle Agency LLC entered a non-binding letter of intent to acquire Gateway Insurance Company from Atlas Financial Holdings, Inc. for $4.7 million.
January 21, 2020
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Buckle Agency LLC entered a non-binding letter of intent to acquire Gateway Insurance Company from Atlas Financial Holdings, Inc. (NasdaqCM:AFH) for $4.7 million on January 22, 2020. As part of the transaction, Buckle Agency will acquire Gateway Insurance's corporate charter and forty-seven state insurance licenses as well as state statutory deposits. Total consideration consists of $4.7 million plus the value of all purchased deposits. The amount of $4.20001 million, representing a portion of the purchase price, will be paid to rehabilitator for the benefit of the consolidated estates of the ASI Pool Companies at closing by Buckle. In addition, $0.5 million will be escrowed and released as additional purchase price depending on how many insurance licenses of Gateway are in full force and effect without restriction following the closing. Atlas claims team currently working for the rehabilitation estates of the ASI Pool Companies will join Buckle Agency. The transaction is subject to regulatory, court, negotiation of definitive agreements and other necessary approvals and is expected to close in March 2020. As of March 31, 2020, the transaction is expected to close in April 2020.
Atlas Financial Holdings, Inc. is a financial service holding company. The Companyâs primary business is generating, underwriting and servicing commercial automobile insurance policies in the United States. The Company focuses on a managing general agency (MGA) strategy, primarily through its wholly owned subsidiary, Anchor Group Management, Inc. (AGMI). AGMI focuses on a niche market orientation for the light commercial automobile sector. This sector includes taxi cabs, limousines, livery, full-time transportation network companies (TNC) drivers/operators, and other specialty commercial auto operators. Automobile insurance products provide insurance coverage in three major areas: liability, accident benefits and physical damage. The Company operates in one business segment: the Managing General Agency segment. The Companyâs subsidiaries include UBI Holdings Inc. (UBI Holdings), optOn Digital IP Inc. (OOIP) and optOn Insurance Agency Inc.