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Truist (TFC) Buys Zaloni Assets, Extends Data Management Skills
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In an effort to extent data management capabilities, Truist Financial Corporation (TFC - Free Report) has acquired the key strategic assets from Zaloni, which is an award-winning leader in data technology solution delivery. Following the acquisition, Zaloni’s offshore team will continue to serve its current customers in addition to providing technology delivery services to TFC.
Per the agreement, Truist acquired the Zaloni Arena platform to accelerate its data governance, metadata management, advanced analytics, and artificial intelligence and machine learning (AI/ML) programs.
Zaloni’s Arena Data Governance Platform rapidly and securely delivers trusted data for advanced analytics and AI/ML use cases, using an intelligent and collaborative data catalog, automated governance, and unified observability to reduce IT costs and accelerate time to insight.
Tracy Daniels, the chief data officer at Truist’s Enterprise Data Office, stated, “Data and analytics are essential to delivering on the needs of our clients, teammates, and stakeholders. I'm thrilled that this deal includes the talented team that built the Arena platform, and that they will continue their data innovation journey as Truist teammates.”
Scott Case, the chief information officer at TFC, said, “Truist is making investments to continuously grow and evolve with our clients' banking needs. In partnership with Truist Ventures, we identified the Arena platform as an investment that will help us deliver better financial experiences, advance our strategy and demonstrate our purpose to inspire and build better lives and communities.”
With an aim to support fee income growth, Truist has been open to strategic inorganic growth efforts.
Recently, TFC’s subsidiary, Truist Insurance Holdings, entered an agreement to acquire the nation’s largest benefits wholesale general agency, BenefitMall, from funds managed by The Carlyle Group Inc. (CG - Free Report) . While the financial terms of the deal have not been disclosed yet, the transaction is expected to close in the third quarter of 2022.
The acquisition of BenefitMall is expected to add $150 million in annual revenues to Truist Insurance Holdings’ wholesale division. Serving clients for more than 40 years, BenefitMall provides medical, dental, life, vision and long-term care benefit solutions through its network of 20,000 retail brokers. The company also provides employee benefits to more than 140,000 small and medium-sized businesses across the country.
BenefitMall’s CEO, Scott Kirksey, commented, “We are proud of the growth we have achieved through our partnership with Carlyle and look forward to the exciting opportunity ahead to continue to deliver the fastest, easiest and most trusted benefits selling experience as part of the Truist team.”
Moreover, to further strengthen its insurance business, TFC acquired Kensington Vanguard National Land Services and the insurance distribution platform, Constellation Affiliated Partners. Also, to augment its point-of-sales lending business, the company acquired Service Finance Company for $2 billion in cash.
Over the past year, shares of TFC have lost 13% compared with a decline of 15.5% recorded by the industry.
TowneBank (TOWN - Free Report) signed a deal worth $56 million or $17.82 per share to acquire Farmers Bankshares, Inc. and its subsidiary Farmers Bank. The closing of the deal is expected in the first quarter of 2023.
The transaction is expected to solidify TowneBank’s number one market share in the Virginia Beach-Norfolk-Newport News, MSA. Moreover, with the acquisition, TOWN will be able to expand Towne Insurance revenues.
Citizens Financial Group, Inc. (CFG - Free Report) is also on a buyout spree. This July, the company announced plans to acquire Paladin Advisors, an independent, registered investment advisor, to strengthen its private wealth management business.
Earlier, CFG closed the acquisitions of DH Capital LLC and Investors Bancorp. In February, it closed the buyouts of 80 East Coast branches and the national online deposit business from HSBC Bank U.S.A, N.A. These and other buyouts enable Citizens Financial to expand its product capabilities and geographic reach.
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Truist (TFC) Buys Zaloni Assets, Extends Data Management Skills
In an effort to extent data management capabilities, Truist Financial Corporation (TFC - Free Report) has acquired the key strategic assets from Zaloni, which is an award-winning leader in data technology solution delivery. Following the acquisition, Zaloni’s offshore team will continue to serve its current customers in addition to providing technology delivery services to TFC.
Per the agreement, Truist acquired the Zaloni Arena platform to accelerate its data governance, metadata management, advanced analytics, and artificial intelligence and machine learning (AI/ML) programs.
Zaloni’s Arena Data Governance Platform rapidly and securely delivers trusted data for advanced analytics and AI/ML use cases, using an intelligent and collaborative data catalog, automated governance, and unified observability to reduce IT costs and accelerate time to insight.
Tracy Daniels, the chief data officer at Truist’s Enterprise Data Office, stated, “Data and analytics are essential to delivering on the needs of our clients, teammates, and stakeholders. I'm thrilled that this deal includes the talented team that built the Arena platform, and that they will continue their data innovation journey as Truist teammates.”
Scott Case, the chief information officer at TFC, said, “Truist is making investments to continuously grow and evolve with our clients' banking needs. In partnership with Truist Ventures, we identified the Arena platform as an investment that will help us deliver better financial experiences, advance our strategy and demonstrate our purpose to inspire and build better lives and communities.”
With an aim to support fee income growth, Truist has been open to strategic inorganic growth efforts.
Recently, TFC’s subsidiary, Truist Insurance Holdings, entered an agreement to acquire the nation’s largest benefits wholesale general agency, BenefitMall, from funds managed by The Carlyle Group Inc. (CG - Free Report) . While the financial terms of the deal have not been disclosed yet, the transaction is expected to close in the third quarter of 2022.
The acquisition of BenefitMall is expected to add $150 million in annual revenues to Truist Insurance Holdings’ wholesale division. Serving clients for more than 40 years, BenefitMall provides medical, dental, life, vision and long-term care benefit solutions through its network of 20,000 retail brokers. The company also provides employee benefits to more than 140,000 small and medium-sized businesses across the country.
BenefitMall’s CEO, Scott Kirksey, commented, “We are proud of the growth we have achieved through our partnership with Carlyle and look forward to the exciting opportunity ahead to continue to deliver the fastest, easiest and most trusted benefits selling experience as part of the Truist team.”
Moreover, to further strengthen its insurance business, TFC acquired Kensington Vanguard National Land Services and the insurance distribution platform, Constellation Affiliated Partners. Also, to augment its point-of-sales lending business, the company acquired Service Finance Company for $2 billion in cash.
Over the past year, shares of TFC have lost 13% compared with a decline of 15.5% recorded by the industry.
Image Source: Zacks Investment Research
Currently, Truist carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Growth Efforts by Other Firms
TowneBank (TOWN - Free Report) signed a deal worth $56 million or $17.82 per share to acquire Farmers Bankshares, Inc. and its subsidiary Farmers Bank. The closing of the deal is expected in the first quarter of 2023.
The transaction is expected to solidify TowneBank’s number one market share in the Virginia Beach-Norfolk-Newport News, MSA. Moreover, with the acquisition, TOWN will be able to expand Towne Insurance revenues.
Citizens Financial Group, Inc. (CFG - Free Report) is also on a buyout spree. This July, the company announced plans to acquire Paladin Advisors, an independent, registered investment advisor, to strengthen its private wealth management business.
Earlier, CFG closed the acquisitions of DH Capital LLC and Investors Bancorp. In February, it closed the buyouts of 80 East Coast branches and the national online deposit business from HSBC Bank U.S.A, N.A. These and other buyouts enable Citizens Financial to expand its product capabilities and geographic reach.