Prudential plans to acquire U.S. based tech startup Assurance IQ
Category: #business  By Mateen Dalal  Date: 2019-09-07
  • share
  • Twitter
  • Facebook
  • LinkedIn

Prudential plans to acquire U.S. based tech startup Assurance IQ

The insurance company has signed a deal with Assurance IQ for $2.35 billion and is willing to pay extra $1.15 billion in equity and cash.

Prudential Financial, Inc., a Fortune 500 company that offers investment management, insurance and other financial services, has recently signed a deal to acquire Assurance IQ, a Seattle-area insurance company for $2.35 billion.

According to reliable sources, the acquisition will allow Prudential to reach more customers online with the help of the tech-focused insurance seller’s expertise. Meanwhile, Assurance IQ, which sells several insurance policies over the internet, is expected to bag an additional amount of $1.15 billion in equity and cash if it achieves some growth objectives set by Prudential, besides the upfront $2.35 billion.

Reportedly, Assurance is a self-funded startup that is rapidly growing and is highly profitable. The company offers a wide range of third-party insurance plans, that fits right in the gap for Prudential, which currently is not available on its platforms.

As per the agreement, Prudential will offer its plans alongside other services on Assurance. Whereas the startup will become a fully owned subsidiary of Prudential after the deal closes in 2019, with all the 120 Assurance employees continuing to stay with the company after the acquisition.

Speaking on the move, Michael Rowell, CEO & Founder, Assurance, said that the take-over would permit the companies to expand into new markets and more people with a more expansive suite of offering to develop their combined growth.

Sources suggest that the purchase will also offer Prudential access to the insurance company’s technology and data science talent that complements the users with insurance plans which could be bought online or from an agent.

In addition, the two companies claim that this approach is reinforced by a continuous shift in customers preferences, whereas people are gradually starting their research for customized financial services online and request consultation with experts to complete their transaction.

Source Credit: https://www.geekwire.com/2019/prudential-buy-seattle-area-insurance-tech-startup-assurance-2-35b/

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

Mateen has completed his Bachelor’s degree in electronics and telecommunication engineering, post which he lent his proficiency to the industry, working as a quality and test engineer. Drawn intricately toward the field of content creation however, Mateen soon switc...

Read More

More News By Mateen Dalal

PayPal buys Happy Returns to strengthen reverse logistics system
PayPal buys Happy Returns to strengthen reverse logistics system
By Mateen Dalal

U.S. based digital payments platform, PayPal, an online payment system entity has announced the purchase of Happy Returns- a returns solution firm that provides online buyers access to simplified ways to return unwanted merchandise to retailers; elim...

YOP officially unveils YOP app to ease access to DeFi for the masses
YOP officially unveils YOP app to ease access to DeFi for the masses
By Mateen Dalal

Yield Optimization Platform and Protocol (YOP) recently declared its official launch of YOP application; the first all-in-one mobile app which makes it quite easier for everyone to access DeFi. The V0 version of the app is now available for early acc...

Singapore to create second national supercomputer with more on roadmap
Singapore to create second national supercomputer with more on roadmap
By Mateen Dalal

Following its success of the first supercomputer system, Singapore is set to build its upcoming second supercomputer system in an attempt to strengthen the local research community, offering 8X more computing capacity than its previous model. The sy...