- Prudential Financial (NYSE:PRU) agrees to acquire Assurance IQ, a direct-to-consumer platform for individuals seeking personalized health and financial wellness solutions, for $2.35B upfront plus an additional earnout of up to $1.15B in cash and equity based on achieving growth objectives.
- Sees deal "modestly accretive" to EPS and ROE starting in 2020.
- Sees deal generating cost savings of $50M-$100M.
- Plans to use a combination of current cash, debt financing, and equity to fund the acquisition, which is expected to close in early Q4 2019.
- Prudential slips 0.8% in premarket trading.
- Prudential's board authorizes a $500M increase to its share repurchase for calendar year 2019, bringing its share buyback authorization for the full year to $2.5B.
- Using a combination of advanced data science and human expertise, Assurance IQ matches buyers with customized solutions spanning life, health, Medicare, and auto insurance, giving them options to purchase entirely online or with the help of a technology-assisted live agent.
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Conference call at 8:00 AM ET.