Bermuda-based re/insurer American Safety Insurance Holdings Ltd today announced it had been bought out by US-based financial services corporation Fairfax Financial Holdings Ltd in a deal worth around $306 million.Shareholders of the Bermuda firm will receive $29.95 in cash, representing a premium of more than 22 percent to the closing price on May 31.American Safety has operations in the US and Bermuda. Fairfax said it had entered into a purchase and sale agreement with Tower Group International, Ltd, which will result in Fairfax selling the Bermuda subsidiary, American Safety Reinsurance Ltd to Tower Group promptly upon acquiring it.The American Safety board unanimously decided that the merger is in the best interest of the company and its stockholders. They will recommend that shareholders vote for the transaction.Stephen Crim, president and chief executive officer of American Safety, said: “We are excited to become part of the Fairfax organisation, which is highly regarded in the insurance industry. Our specialty insurance platform will fit well into subsidiaries Crum & Forster and Hudson Insurance Group, facilitating a seamless transition for our customers.“I want to express my deep gratitude to our employees, business partners, management and board for their role in building our successful specialty insurance company.”Prem Watsa, chairman and CEO of Fairfax, said: “We look forward to working with the talented professionals in the American Safety team. We expect to enhance our insurance operations in certain specialty lines of business with American Safety’s expertise.”BofA Merrill Lynch is acting as exclusive financial advisor to American Safety and Shearman & Sterling LLP is acting as legal counsel to American Safety.