Zenith National Insurance Corp. said that its stockholders had voted in favor of the company’s acquisition by Fairfax Financial Holdings Ltd. in a deal valued at $1.4 billion.

At a special meeting of stockholders on Thursday in Woodland Hills, 98.9 percent of shares were voted in favor of the transaction, the company said, representing 76 percent of outstanding shares. The merger, which still must be approved by the California Department of Insurance, is expected to close in the current quarter.

Fairfax, a Toronto, Ontario insurance holding company, is Zenith’s second largest shareholder with an 8 percent stake as of Jan 25. It will pay $38 per share in cash to acquire the remaining outstanding shares.

Zenith primarily operates in California and Florida, with business in 43 additional states and the District of Columbia. Its ZNAT Insurance Co. subsidiary conducts business in Arizona, California, Iowa, Texas and Utah.

Zenith shares were down 3 cents, or less than 1 percent, to $37.86 in midday trading on the New York Stock Exchange.