Unum to Acquire Provident in Stock Swap

Unum Corp. is acquiring Provident Cos. in a $4.75-billion stock swap that would create the largest U.S. provider of disability income insurance, the companies said. Portland, Maine-based Unum already is the top provider to groups of insurance that covers loss of income from illness or injury. Provident, based in Chattanooga, Tenn., is the biggest seller of such coverage to individuals.

The combined company, to be named UnumProvident, would have annual revenue of about $8.43 billion.

Under the deal, Unum would pay 0.73 of a share, or $35.13 based on Friday’s closing price, for each Provident share. The exchange is a 5.3% premium to Provident’s price late last week. Provident climbed $4.13 to close at $37.50 on Monday, and Unum rose $4.50 to $52.63, both on the New York Stock Exchange.