Dallas-based Gainsco has agreed to be acquired by State Farm in a $400 million deal, according to a Thursday news release.
The deal, in which State Farm has agreed 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 operate as a separate company, but over time the two insurance firms will begin to combine products offered to customers, according to State Farm. The deal is expected to close in early 2021 pending approval of Gainsco’s shareholders.
“We are excited for the opportunity State Farm agents will have to serve a market that has historically not been open to them,” State Farm president and CEO Michael Tipsord said in a statement. “This will help us further toward our goal of serving more customers in more ways.”
With its headquarters in Oak Lawn, Gainsco was founded in 1978 and specializes in providing minimum-limits personal auto coverage, or insurance plans that meet legal minimums in each state. It employs more than 400 in Dallas.
Parent company Gainsco’s MGA Insurance Co. primarily insures lower-income, high-risk customers. Gainsco is a publicly held company, though one that does not report earnings to the U.S. Securities and Exchange Commission.
“GAINSCO looks forward to providing our very successful minimum-limits auto insurance program to State Farm agents in the future, while continuing to partner with our own outstanding agency system as we expand across the country,” Gainsco CEO Glenn Anderson said in a statement.