: North Western Lift to be bought out by a Prosperity Life affiliate for $500 a share

National Western Life Group Inc. NWLI announced an agreement Monday to be acquired by Prosperity Life Group affiliate S. USA Life Insurance company in a cash deal valued at $1.9 billion. National Western’s stock shot up 13.9% into record territory after a trading halt for news was lifted. Under terms of the deal, each National Western share outstanding will be converted into the right to receive $500 in cash, which represents a premium of 19.8% to Friday’s closing price of $417.19 and is 7.9% above the Aug. 30 record close of $463.22. The deal, which follows National Western review of strategic alternatives to boost shareholder value, is expected to close in the first half of 2024. “The transaction provides clear and immediate value for our stockholders at an attractive premium,” said National Western Chief Executive Ross Moody. The life insurer’s stock has lost 1.1% over the past three months through Friday, while the SPDR S&P Insurance ETF KIE has gained 4.0% and the S&P 500 SPX has slipped 2.1%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.