iA Financial Group is releasing US$170 million to expand its presence in the United States and acquire insurer Vericity.

The purchase price equates to a 100% premium over Vericity’s stock price as of the close of trading on Monday.

The Quebec company formerly known as Industrial Alliance is offering US$11.43 per share to acquire Vericity while the stock closed the first session of the week at US$5.70 on the NASDAQ.

The transaction is announced as Vericity’s stock market value is down approximately 25% this year.

The transaction has received approval from Vericity’s majority shareholder, J.C. Flowers.

Vericity, headquartered in Des Plaines, Illinois, has more than 400 employees.

Vericity’s activities are grouped into two entities, an insurer (Fidelity Life) and a digital marketing agency (eFinancial).

Fidelity’s gross written premiums totaled $220 million last year as eFinancial brings together a national distribution network of 200 representatives and issues approximately 60,000 new insurance policies each year.

eFinancial distributes policies for Fidelity Life and over 20 other life insurers.

iA Financial Group specifies that the purchase price will be financed by available capital.

Specializing in insurance and wealth management, iA Financial Group will present its next quarterly results on November 7.

Since the start of the year, iA Financial Group’s stock is up 7%. The current stock price gives the company a market capitalization of almost $9 billion.