The Blackstone Group, along with Goldman Sachs and DLJ Merchant Banking, has acquired Texas-based insurance group UICI in a transaction valuing the company at $1.7bn (€1.4bn).

UICI has been working on a sale since mid-2004, but the process accelerated after the company's founder and chairman Ronald Jensen was killed in a car crash earlier this month. Jensen is to be replaced as chairman by current chief executive William Gedwed.