NAPA -- The Doctors Company, a national insurer of physician and medical liability based in Napa, entered into an agreement to acquire American Physicians Capital Inc., a provider of health care liability insurance, for $41.50 per share in cash, or approximately $386 million.

The $41.50 per share cash purchase price represents about 31 percent over the $31.76 per share closing price as of last Wednesday, the day prior to the announcement.

With this merger, The Doctors Company expands its coverage to nearly 55,000 member insureds. The transaction is expected to close in the fourth quarter, subject to approvals.