Spencer Capital Holdings, a global investment firm, has agreed to acquire USA Risk Group. Financial terms of the transaction were not disclosed.
The transaction is subject to customary closing requirements and regulatory approval, and is expected to close during Q1 of 2015.
USA Risk currently serves over 300 clients, holding $9 billion assets under management.
According to Spencer Capital, its financial and operational support will provide USA Risk with the opportunity to “grow and expand its client capabilities while maintaining its longstanding autonomy”.
Spencer Re, a reinsurance subsidiary of Spencer Capital Holdings, and USA Risk are expected to be mutual beneficiaries from cross-selling opportunities.
“USA Risk’s unparalleled reputation and leadership position in the captive industry is a welcomed addition to Spencer Capital Holdings as we seek to assemble a robust platform of leading and value-driven companies in the insurance and financial services industries,” said Ken Stein, chairman of Spencer Capital.
Lincoln Miller, group chairman of USA Risk, commented: “We have been approached by many suitors over the years, but until we met the team at Spencer Capital, we did not view a transaction as being in the best interests of our customers and employees.”
“Stein and his team embody the same ethos we instil in our employees and we share the same long-term interests for growing USA Risk. This also allows us to maintain our long-held philosophy of independence from conflicts of broker-owned managers.”
After the transaction closing, USA Risk will keep its name and continue to operate as it has done for over 30 years. Miller will join the board of directors of Spencer Capital and Gary Osborne, currently president of USA Risk, will join the board of directors of Spencer Re.
As well as its base in Vermont, USA Risk has established member companies in 10 additional locations, servicing 20 captive domiciles, inside and outside the US market.
