Under terms of the deal, Jefferson-Pilot shareholders will receive 1.0906 Lincoln shares, a cash payment or a combination of shares and cash valued at $55.48 for each Jefferson-Pilot share they own. The combination offer represents a 9.2 percent premium over Jefferson’s Friday closing price of $50.79 on the New York Stock Exchange. 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! “It makes perfect sense, and it’s just what the doctor ordered,” analyst Tamara Kravec, who follows both companies for Bank of America Securities LLC, wrote to investors after the announcement. “Given the challenging operating environment for life insurers, we believe this merger makes perfect sense,” she wrote. “The products and distribution channels of both companies are complementary and there is little overlap.” In an interview, Kravec compared the deal to MetLife Inc.’s $11.5 billion purchase of Citigroup Inc.’s Travelers Life & Annuity and most of Citigroup’s international insurance business earlier this year. “From a strategic sense, they both were in a search for scale and size,” she said. “Scale is more important than it used to be. Shelf space is dwindling, and you need to be in the top five to get market share.” The deal would combine Lincoln’s strengths in life and annuities products with Jefferson-Pilot’s sizable presence in fixed and variable universal life and fixed annuities, including equity-indexed annuities and other insurance, the companies said. CHARLOTTE, N.C. – Lincoln National Corp. said Monday that it will acquire rival Jefferson-Pilot Corp. for about $7.5 billion in cash and stock, as the two century-old companies create what executives said would be one of the largest publicly traded life insurance companies in the U.S. The buyer, which will retain the Lincoln National and Lincoln Financial Group names, will be the nation’s largest seller of universal life insurance products and a leader in group disability insurance and retirement plan assets, the companies said. The deal is expected to be completed in the first quarter of 2006 after shareholder and regulatory approval. Executives predicted annual cost savings of about $180 million after the two companies are combined. Lincoln National has annual sales of $5.4 billion, while Jefferson-Pilot has annual sales of $4.1 billion.