Back to top

Analyst Blog

Prudential Financial Inc. (PRU - Analyst Report) has entered an agreement to sell a wealth management services unit, which forms a small portion of its operations, to Envestnet Inc. (ENV - Snapshot Report) for $33 million. Envestnet provides technology enabled, Web based investment solutions and services to investment advisors.

The deal is expected to culminate in the third quarter of 2013. Initially, Prudential will receive cash worth $10 million from Envestnet and the remaining $23 million in additional cash payments over three years.

Management decided to divest the segment as it forms a very small portion of the company’s business. In 2012 Wealth Management accounted for approximately $22 billion on behalf of institutional clients. Prudential manages $1.06 trillion in assets.

Headquartered in Newark, N.J., Prudential is a leading financial institution in the United States. The wealth Management Solutions segment has been helping financial services firms and banks for more than 30 years to expand and enhance their business.

On the other hand Envestnet aims to foray into the banking channel through the acquisition. ENV will become the largest independent wealth management platform post the acquisition of Wealth management solutions from Prudential.

The divestiture is in line with the company’s strategy of strengthening profitable operations. Earlier, Prudential sought to fortify its operations through the extension of its Agency Gateway Program for multifamily properties. The company announced the deal in Mar 2013 with in order to originate $200 million in program loans in 2013.

Among others in the industry, Genworth Financial Inc. (GNW - Analyst Report) entered into an agreement to sell its Wealth Management Business to the joint venture company of Aquiline Capital Partners and Genstar Capital for approximately in Mar 2013. The company aims at generating capital by divesting its non-core business.

Prudential currently carries a Zacks Rank #3 (Hold). Another industry major, CNO Financial Group Inc. (CNO - Analyst Report) carries a favorable Zacks Rank #1 (Strong Buy) and is worth noting.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%