NEW YORK (AP) -- Insurance and reinsurance provider Validus Holdings Ltd. said Friday that it completed its acquisition of Flagstone Reinsurance Holdings SA in a cash and stock deal worth about $621.3 million.
The Bermuda-based company said the acquisition will strengthen its position in catastrophe risk and boost its client base.
Under the terms of the agreement, Flagstone shareholders are getting $2 in cash and 0.1935 shares of Validus common stock for each of their Flagstone shares. Based on Validus' Thursday closing stock price of $34.87, the stock portion of the deal is worth $6.75 per share.
The total price of $8.75 per share represents a 24 percent premium over Luxembourg-based Flagstone's closing stock price on Aug. 29, the day before the deal was announced. The company has about 71 million shares outstanding, according to FactSet.
Flagstone's shares stopped trading effective Friday and they will be delisted from the New York Stock Exchange, Flagstone said.
Validus Holdings shares edged up 4 cents to $34.91 in morning trading.
