MEMIC Group Completes Acquisition of The Dakota Group

The MEMIC Group has successfully completed its acquisition of The Dakota Group, which includes Risk Administration Services, Inc. (RAS) and its affiliated service companies. This strategic move significantly enhances MEMIC’s position in the market.

With this acquisition, MEMIC emerges as the third-largest multi-state workers’ compensation specialist in the United States. The combined estimated writings for 2025 are projected to exceed $600 million, providing coverage for over 25,000 businesses across the nation. Notably, both MEMIC and The Dakota Group hold an A (Excellent) rating from A.M. Best, underscoring their strong financial stability and commitment to quality service.

As the attorney-in-fact for Dakota Truck Underwriters, RAS plays a pivotal role in this acquisition, gaining a controlling interest in First Dakota Indemnity. This transaction also encompasses The Dakota Group’s affiliated service companies, which deliver essential cost-containment services. These services include case management, PPO networks, and medical bill review, catering to a diverse client base throughout the Midwest.

The acquisition not only strengthens MEMIC’s operational capabilities but also enhances its service offerings. RAS, serving as attorney-in-fact for the reciprocal insurer Dakota Truck Underwriters (DTU), will now manage First Dakota Indemnity Company, further consolidating its influence in the industry.

The Dakota Group has established a robust presence in the upper Midwest, making this acquisition particularly strategic for MEMIC as it seeks to expand its footprint in this region.

In terms of advisory roles, Aon Securities LLC acted as the financial advisor for MEMIC, while Pierce Atwood LLP provided legal counsel throughout the transaction. Keefe, Bruyette & Woods, a Stifel Company, also served as a financial advisor. On the other side, Trade Law PC and Troutman Pepper Locke LLP represented The Dakota Group as legal counsel.

While the specific terms of the transaction remain undisclosed, the implications for both organizations are significant, promising enhanced service capabilities and a stronger market position.

Topics
Mergers & Acquisitions

The MEMIC Group has successfully completed its acquisition of The Dakota Group, which includes Risk Administration Services, Inc. (RAS) and its affiliated service companies. This strategic move significantly enhances MEMIC’s position in the market.

With this acquisition, MEMIC emerges as the third-largest multi-state workers’ compensation specialist in the United States. The combined estimated writings for 2025 are projected to exceed $600 million, providing coverage for over 25,000 businesses across the nation. Notably, both MEMIC and The Dakota Group hold an A (Excellent) rating from A.M. Best, underscoring their strong financial stability and commitment to quality service.

As the attorney-in-fact for Dakota Truck Underwriters, RAS plays a pivotal role in this acquisition, gaining a controlling interest in First Dakota Indemnity. This transaction also encompasses The Dakota Group’s affiliated service companies, which deliver essential cost-containment services. These services include case management, PPO networks, and medical bill review, catering to a diverse client base throughout the Midwest.

The acquisition not only strengthens MEMIC’s operational capabilities but also enhances its service offerings. RAS, serving as attorney-in-fact for the reciprocal insurer Dakota Truck Underwriters (DTU), will now manage First Dakota Indemnity Company, further consolidating its influence in the industry.

The Dakota Group has established a robust presence in the upper Midwest, making this acquisition particularly strategic for MEMIC as it seeks to expand its footprint in this region.

In terms of advisory roles, Aon Securities LLC acted as the financial advisor for MEMIC, while Pierce Atwood LLP provided legal counsel throughout the transaction. Keefe, Bruyette & Woods, a Stifel Company, also served as a financial advisor. On the other side, Trade Law PC and Troutman Pepper Locke LLP represented The Dakota Group as legal counsel.

While the specific terms of the transaction remain undisclosed, the implications for both organizations are significant, promising enhanced service capabilities and a stronger market position.

Topics
Mergers & Acquisitions