Prudential Financial Inc.
) has entered an agreement to sell a wealth management services
unit, which forms a small portion of its operations, to
) for $33 million. Envestnet provides technology enabled, Web
based investment solutions and services to investment
The deal is expected to culminate in the third quarter of
2013. Initially, Prudential will receive cash worth $10 million
from Envestnet and the remaining $23 million in additional cash
payments over three years.
Management decided to divest the segment as it forms a very
small portion of the company's business. In 2012 Wealth
Management accounted for approximately $22 billion on behalf of
institutional clients. Prudential manages $1.06 trillion in
Headquartered in Newark, N.J., Prudential is a leading
financial institution in the United States. The wealth Management
Solutions segment has been helping financial services firms and
banks for more than 30 years to expand and enhance their
On the other hand Envestnet aims to foray into the banking
channel through the acquisition. ENV will become the largest
independent wealth management platform post the acquisition of
Wealth management solutions from Prudential.
The divestiture is in line with the company's strategy of
strengthening profitable operations. Earlier, Prudential sought
to fortify its operations through the extension of its Agency
Gateway Program for multifamily properties. The company announced
the deal in Mar 2013 with in order to originate $200 million in
program loans in 2013.
Among others in the industry,
Genworth Financial Inc.
) entered into an agreement to sell its Wealth Management
Business to the joint venture company of Aquiline Capital
Partners and Genstar Capital for approximately in Mar 2013. The
company aims at generating capital by divesting its non-core
Prudential currently carries a Zacks Rank #3 (Hold). Another
CNO Financial Group Inc.
) carries a favorable Zacks Rank #1 (Strong Buy) and is worth
CNO FINL GRP (CNO): Free Stock Analysis
ENVESTNET INC (ENV): Free Stock Analysis
GENWORTH FINL (GNW): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
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