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.