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Prudential Financial Spends $2.35 Billion to Acquire Online Start-up

Finance

The price was right, and Prudential Financial pounced on it to close the deal. The US insurer has reportedly agreed to acquire online start-up Assurance IQ for $2.35 billion, according to Reuters and the Wall Street Journal.

Prudential will also pay $1.15 billion in cash plus equity as add ons, if certain growth rates are achieved by the start-up.

The original plan is to make money from commissions plus other fees that Assurance gets from providers. Prudential Financial will also add its own life insurance and annuity products with time.

Assurance IQ sells health, life, home, auto, and Medigap policies online, while offering products from more than 20 providers, excluding Prudential.

Both companies were not immediately available for comment, according to Reuters.

Source Link: https://www.insurancebusinessmag.com/us/news/breaking-news/prudential-financial-spends-2-35-billion-to-buy-online-startup-177154.aspx

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Ezra Ondara

Ezra Ondara

Ezra Ondara is a freelance writer and journalist with a keen interest digital marketing, finance, real estate and insurance. He has a nose for news in these key areas and is determined to keep online readers and enthusiasts up to date with real stories as they happen from all around the globe. When he’s not poking his nose into the business world, he will be watching the Premier League over the weekend or out of town with his family.

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