Catalina Holdings (Bermuda) Ltd. has entered an agreement to acquire SPARTA Insurance Holdings Inc. Following the closing of the transaction, Catalina plans to place some of the business into run off, and to transfer SPARTA's alternative market business to Arch Insurance Co. under a separate renewal rights agreement. SPARTA predominantly focuses on specialty program and risk transfer alternatives in the United States.

Catalina will acquire SPARTA from cash at hand and a senior debt facility, Catalina said. The transaction, which is subject to regulatory approval, is expected to close in Q3 2014. As of Dec. 31, 2013, SPARTA had total assets of $911 million, gross reserves of $495 million, net reserves of $309 million and shareholder equity of $201 million.

This is Catalina’s 12th transaction since the business was established in 2005, said the company. Total assets of Catalina pro forma for this acquisition will be in excess of $2.9 billion. Mayer Brown LLP acted as legal advisers to Catalina in this transaction. J.P. Morgan Securities LLC acted as financial advisor, and Willkie Farr & Gallagher LLP acted as legal advisors to Sparta in this transaction.

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