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Industrial Alliance Insurance and Financial Services Inc. says it has signed a deal to acquire Texas-based American-Amicable Holding Inc. for $145-million in cash.

The Quebec City-based insurer said Wednesday it expects the takeover to add to its net profit by about 5 cents a share per year.

The deal is expected to close this summer and broadens the Canadian company's operations in the United States.

"This agreement with American-Amicable is an important milestone in our U.S. growth strategy," said Yvon Charest, president and chief executive officer of Industrial Alliance.

"Building on our local operations in Scottsdale, Ariz., it provides us with the scale and presence to accelerate our U.S. growth plan," he added.

The transaction, which will be carried out through the company's U.S. subsidiary IA American Life Insurance, will include excess capital of $45-million.

"American-Amicable brings a stable stream of revenues and profits, a low-risk investment portfolio, a well-developed distribution network and an experienced management team. Its life insurance products target the middle-income market which is under-served and offers significant growth opportunities," Mr. Charest said.

Founded in 1910, American-Amicable is based in Waco, Tex. and employs about 115 people. It markets traditional life insurance products to mid-market customers in the individual and final expense markets.

Lanny Peavy, president of American-Amicable says the company will do its best to ensure a smooth transition under the new management.

"We are pleased with the commitment that Industrial Alliance has made to our community by maintaining a strong corporate presence and offering continued employment to all our staff."

Industrial Alliance signed a deal to raise $200-million in an offering of common and preferred shares in February and said the cash would partially be used to finance potential acquisitions.

Industrial Alliance administers over $58-billion in assets. It forecasted earnings per share of $2.75 to $3.25 in 2010.

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