Prudential, a British multinational life insurance and financial services company, has sold its broker-dealer network in the US.
The broker-dealer network comprises of INVEST Financial, Investment Centers of America, National Planning and SII Investments, LPL Financial.
The transaction is structured as an asset sale, which includes substantially all the business of the network, for an initial purchase price of US$325 million, which may increase to a maximum of approximately US$448 million subject to certain transition criteria.
The transaction has closed after receiving all necessary regulatory approvals and the transition is expected to be completed by the end of the first quarter of 2018.
Prudential North American business unit chairman and CEO Barry Stowe 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 NPH network to a leading independent broker-dealer well suited to support financial advisors and their retail clients going forward.”