The Doctors Co. followed an aggressive prescription for growth
Tuesday. The Napa, Calif.-based private physician-owned medical malpractice
insurer reached an agreement to acquire publicly traded SCPIE Holdings Inc.,
also a major healthcare liability insurance provider, for approximately
$281
million in cash. Doctors is offering $28 per share in cash, which
represents a 27% premium from SCPIE's closing price on Monday.
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The
middle-market deal would make Doctors the nation’s largest provider of
professional liability insurance to
physicians and surgeons. Overall, Doctors would be
insuring over 32,000 physicians in the U.S., most of which are in California.
Deutsche Bank Securities Inc. acted as financial adviser to
SCPIE, while Latham & Watkins LLP and Richards, Layton & Finger LLP
provided it with legal advice. Meanwhile, Fox-Pitt Kelton Cochran Caronia
Waller acted as financial adviser to Doctors; Thelen Reid Brown Raysman &
Steiner LLP provided legal advice. — Gerald
Magpily
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Los Angeles Business Journal
