ProAssurance Corp ( PRA ) shares are soaring in Wednesday’s after-hours session following the company announcement that it will be acquired by The Doctors Company.

What Happened: After market close on Wednesday, ProAssurance ( PRA ) announced it entered into a definitive agreement to be acquired by physician-owned medical malpractice insurer The Doctors Company for $25 per share in cash.

The deal has a transaction value of approximately $1.3 billion and represents a 60% premium to ProAssurance’s stock price at the close on Tuesday.

“This transaction will deliver significant value to our shareholders,” said Ned Rand, president and CEO of ProAssurance ( PRA ).

“Bringing the strengths and capabilities of our companies together now will allow our teams to continue to serve today’s healthcare providers with the necessary scale and breadth of capabilities.”

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ProAssurance’s board unanimously approved the transaction. The deal is expected to close in the first half of 2026. Upon closing, ProAssurance’s common stock will no longer be listed on the New York Stock Exchange and the company will become a wholly-owned subsidiary of The Doctors Company.

“Healthcare is a team sport and the teams are getting larger. In order to provide them the best imaginable service requires a mission-based company with nationwide scale, resources and dedication to all medical professions and healthcare providers,” said Richard Anderson, chairman and CEO of The Doctors Company.

PRA Price Action: ProAssurance ( PRA ) shares were up 50.13% after-hours, trading at $23.33 at the time of publication Wednesday, according to Benzinga Pro.