Advantage Insurance Inc. (NYSE:AVI) entered into a share purchase agreement to acquire Argus International Life Bermuda Limited from Argus Group Holdings Limited (BER:AGH.BH) for $7 million on June 25, 2018. As per terms, total purchase price will be approximately $7 million, consisting of a payment at closing of $1 million in cash representing the projected tangible book value of the Argus business as of the closing date; and approximately $6 million of subsequent earn-out payments. The initial cash payment is subject to adjustment to match the tangible book value of the Argus business as of the closing date. The earn-out payments are evidenced by a non-interest bearing promissory note that requires principal payments to be made over three years. The principal payments are subject to reduction if policies within the Argus block are cancelled or surrendered during the three-year earn-out period. Advantage Insurance will fund the initial and future purchase price payments with cash on hand and internal financial resources. The acquisition also includes the subsidiaries of Argus International Life Bermuda Limited, Argus International Life Insurance Limited and Bermuda Life Worldwide Limited. For the year ending March 31, 2018, Argus International Life Bermuda Limited had revenues of BMD 3.2 million ($3.2 million) and net income of BMD 0.54 million ($0.54 million). As of March 31, 2018, Argus International Life Bermuda Limited reported total assets of approximately BMD 580 million (approximately $580 million) and equity of BMD 10.7 million ($10.7 million). The acquisition is subject to regulatory approvals in each of Bermuda and Puerto Rico and is expected to close on or before September 30, 2018.

Advantage Insurance Inc. (NYSE:AVI) cancelled to acquire Argus International Life Bermuda Limited from Argus Group Holdings Limited (BER:AGH.BH) in the year ended March 31, 2019.