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

Ather Energy raises $250 million to stay ahead in competition
Ather Energy raises $250 million to stay ahead in competition
By Mateen Dalal

Electric scooter producer Ather Energy has reportedly secured $250 million in a new funding round. As per reports, the investment round is in its early stages. The company’s goal is to obtain $200 million to $250 million to compete in the EV...

Digital wellness startup Mojorcare bags USD 20 Mn in Series A funding
Digital wellness startup Mojorcare bags USD 20 Mn in Series A funding
By Mateen Dalal

Mojocare, a wellness and health startup has reportedly raised USD 20.6 million in a Series A round of funding which was led by B Capital Group and saw participation from existing investors including Sequoia India’s Surge, Better Capital, and Ch...

Exponent Energy bags USD 13 million in Lightspeed-led Series A funding
Exponent Energy bags USD 13 million in Lightspeed-led Series A funding
By Mateen Dalal

Bangalore-based Exponent Energy has reportedly secured USD 13 million in a Series A funding round which was spearheaded by Lightspeed Venture Partners. The round also saw participation from existing investors such as 3one4 Capital, YourNest VC, and A...