Vet Centers to Acquire 25% of Pet Insurance

Veterinary Centers of America Inc. will pay as much as $6 million to acquire 25% of Anaheim-based Veterinary Pet Insurance Inc., the largest U.S. pet health insurance company. Under the agreement, Veterinary Centers will receive convertible preferred stock, as well as the choice of buying one common share of the insurance company for each preferred share. Closely held Veterinary Pet Insurance will use the money to meet state insurance reserve requirements and build a marketing program to inform pet owners about health insurance for their animals. “This is a huge, untapped market because most pet owners don’t even know you can buy veterinary health insurance,” said Bob Antin, chairman and chief executive of Veterinary Centers, which owns and operates the largest number of veterinary hospitals in the U.S. Stock of Santa Monica-based Veterinary Centers fell 38 cents to close at $15.88 on Nasdaq.