Charlotte, N.C. – Lincoln National Corp. said Monday it will acquire rival Jefferson-Pilot Corp. for about $7.5 billion in cash and stock, as the two century-old companies create what executives said would be one of the largest publicly traded life-insurance companies in the U.S.
The buyer, which will retain the Lincoln National and Lincoln Financial Group names, will be the nation’s largest seller of universal life-insurance products and a leader in group disability insurance and retirement-plan assets, the companies said.
The deal is expected to be completed in the first quarter of 2006 after shareholder and regulatory approval.
Executives predicted annual cost savings of about $180 million after the companies are combined.
Lincoln National has annual sales of $5.4 billion while Jefferson-Pilot has annual sales of $4.1 billion.
While job reductions were not specifically discussed Monday, the companies said in a statement they planned to share services and consolidate some functions to save money.
Lincoln National has no immediate plans for Jefferson-Pilot Communications, a unit that owns and operates three television stations and a sports production and syndication business.
Jefferson-Pilot Communications also owns and operates 18 radio stations, including five in Denver: KYGO-FM 98.5, KQKS-FM 107.5, KJCD-FM 104.3, KKFN-AM 950 and KCKK-AM 1600.
Jefferson-Pilot shareholders will own roughly 39 percent of the combined company.
The Denver Post contributed to this report.
