The network, which consists of Invest Financial Corporation, Investment Centers of America, National Planning Corporation and SII Investments, has been sold to LPL Financial, which Prudential describes as the largest independent broker-dealer in the US.
The deal, which has already received all necessary regulatory approvals, has been structured as an asset sale, which includes substantially all the business of the network, for an initial sum of $325m (£251.9m, €276.6m).
The price, however, could increase to as much as $448m subject to certain, unspecified transition criteria.
The transition is expected to complete by the end of 1Q18.
Retirement product focus
Barry Stowe, chairman and chief executive of Prudential North American business unit, said: “While we still very much believe in the independent broker-dealer model, our primary strategy in North America is to focus on being the leading manufacturer of retirement products.
“The transaction with LPL Financial provides us with a compelling opportunity to divest our ownership in the […] network to a leading independent broker-dealer well-suited to support financial advisers and their retail clients going forward.”
M&G Prudential
Prudential announced on Thursday that it has merged its M&G Investments and Prudential UK & Europe operations, forming M&G Prudential that will oversee £332bn in assets under management.
The move follows rising speculation that the insurer could be positioning itself to pull out of the UK market and focus on its more profitable Asian operations.
M&G Prudential will “combine M&G’s active investment expertise with Prudential UK&E’s capabilities in volatility-adjusted savings and liability-driven investment to provide more choice for customers across both brands through retail, institutional and direct channels”, the firm said.
John Foley, currently chief executive of Prudential UK&E, will take the helm of M&G Prudential.
