(Adds details from press statement, share price)
June 23 (Reuters) - Reinsurer Validus Holdings Ltd said it would buy specialty insurer Western World Insurance Group Inc for about $690 million in cash to strengthen its presence in the United States.
Validus said it intends to use existing funds for the deal, which is expected to close in or about the end of the third quarter of 2014.
Franklin Lakes, New Jersey-based Western World offers auto and property insurance and, within Validus, it will operate as an independent business led by its current management team.
Validus provides reinsurance and insurance services and operates through its three Bermuda-based units - Reinsurance Ltd, Talbot Holdings Ltd and AlphaCat Managers Ltd.
The company bought Flagstone Reinsurance Holdings for about $600 million in cash and stock in 2012 to boost its property reinsurance business.
Validus's shares were flat in extended trading after closing marginally down at $36.88 on the New York Stock Exchange on Monday.
Greenhill & Co Inc is Validus's financial adviser, while Skadden, Arps, Slate, Meagher & Flom LLP is its legal counsel.
Western World's financial adviser is Goldman Sachs and its legal counsel are Sullivan & Cromwell LLP and Morrison Cohen LLP.
(Reporting By Neha Dimri in Bangalore; Editing by Savio D'Souza)