Definity Financial Completes $385 Million Private Placement to Fund Strategic Acquisition

Definity Financial Corp. ( (TSE:DFY) ) has issued an announcement.

Definity Financial Corporation has successfully completed a $385 million private placement of common shares, with RBC Capital Markets leading the syndicate of underwriters. The proceeds from this offering, along with a private placement by the Healthcare of Ontario Pension Plan Trust Fund, are intended to fund the acquisition of the Canadian operations of Travelers, excluding its surety business, for approximately $3.3 billion. This strategic acquisition is expected to enhance Definity’s market position, although the transaction is not contingent on financing. If the acquisition does not proceed, the funds will be used for general corporate purposes.

The most recent analyst rating on (TSE:DFY) stock is a Hold with a C$53.00 price target. To see the full list of analyst forecasts on Definity Financial Corp. stock, see the TSE:DFY Stock Forecast page.

Spark’s Take on TSE:DFY Stock

According to Spark, TipRanks’ AI Analyst, TSE:DFY is a Outperform.

Definity Financial Corp. scores well due to its solid financial performance and strategic acquisition that boosts its market position. Technical indicators reveal a strong stock trend but also warn of potential overbought conditions. Valuation is moderate, with the P/E ratio reflecting market confidence but a low dividend yield. The absence of earnings call data does not weigh on the overall score.

To see Spark’s full report on TSE:DFY stock, click here.

More about Definity Financial Corp.

Definity Financial Corporation is a leading property and casualty insurer in Canada, boasting over $4.5 billion in gross written premiums for the 12 months ending March 31, 2025, and approximately $3.4 billion in equity attributable to common shareholders as of the same date.

Average Trading Volume: 214,252

Technical Sentiment Signal: Hold

Current Market Cap: C$8.53B

Learn more about DFY stock on TipRanks’ Stock Analysis page.