Quanta Capital Holdings Ltd. (Nasdaq: QNTA) announced it has entered into a definitive amalgamation agreement with Catalina Holdings (Bermuda) Ltd. and Catalina Alpha Ltd., which specialize in much the same operations as Quanta.

“We are pleased to have entered into a definitive agreement to acquire Quanta and we look forward to working with Quanta’s employees and management to achieve a successful run off. This is an important acquisition for Catalina following the significant expansion of our capital base last year,” Chris Fagan, Catalina’s CEO stated in the press release.

Per the agreement, Catalina will acquire Quanta for approximately $197 million, in a deal expected to close by the last quarter of 2008. Quanta shareholders will receive $2.80 per share, a 55-percent premium to the company’s volume-weighted average sale for the month ending May 29, 2008. When combined with Quanta board’s pre-declared $1.75 cash dividend, Quanta shareholders will receive $4.55 per share during 2008.

“This significant accomplishment would not have been possible without the excellent execution of Quanta’s management team and employees who preserved significant shareholder value during Quanta’s difficult transition into run-off. We owe them our sincere appreciation for all their efforts. I also appreciate the many contributions of my fellow directors in guiding Quanta through the strategic assessment process, sale of Quanta’s interests in a Lloyds syndicate and signing of the amalgamation agreement,” James J. Ritchie, Quanta’s chairman of the board stated. “The acquisition of Quanta brings a solid balance sheet and run-off block to Catalina’s operating structure. We wish them much success in bringing our company into their portfolio.”

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