Dallas-based Gainsco has consented to be acquired by State Farm in a $400 million deal, according to a Thursday news release.
The deal, in which State Farm has consented to purchase all of Gainsco’s stock, is State Farm’s first acquisition of another insurance company in its 98-year history.
Gainsco will continue to run as a different company, but gradually the two insurance companies will begin to combine products used to consumers, according to State Farm. The deal is expected to close in early 2021 pending approval of Gainsco’s shareholders.
“We are delighted for the chance State Farm representatives will have to serve a market that has historically not been open to them,” State Farm president and CEO Michael Tipsord stated in a statement. “This will assist us further toward our objective of serving more consumers in more ways.”
With its headquarters in Oak Yard, Gainsco was founded in 1978 and focuses on offering minimum-limits individual vehicle coverage, or insurance strategies that meet legal minimums in each state. It utilizes more than 400 in Dallas.
Parent company Gainsco’s MGA Insurance coverage Co. primarily guarantees lower-income, high-risk consumers. Gainsco is an openly held company, though one that does not report revenues to the U.S. Securities and Exchange Commission.
“GAINSCO looks forward to offering our really successful minimum-limits vehicle insurance program to State Farm representatives in the future, while continuing to partner with our own impressive company system as we expand throughout the country,” Gainsco CEO Glenn Anderson stated in a statement.