Continuing with its strategy of long-term inorganic growth, Manulife Financial Corp.’s MFC unit John Hancock announced that it has acquired Guide Financial, Inc., a San Francisco-based software provider for financial advisors.
Guide Financial uses behavioral finance and artificial intelligence to build software which makes it easy for investors to plan financial decisions and build wealth.
Manulife feels that Guide Financial’s automated system is a smart way to build wealth for it clients. Its advanced technology will keep investors and advisors on track with text and email notifications and a personalized alert action feed.
The terms of the deals were kept under wraps. Guide Financial will retain its current offices in San Francisco and will operate as an independent group.
The deal will benefit both parties. While it will broaden the products and services offered by John Hancock, it will provide additional resources to Guide Financial to further develop its web-based software portal.
The company is aggressively pursuing the inorganic growth route. In January, it acquired Standard Life Overseas Holdings – the Canada division of Standard Life plc. The takeover has expanded its presence in Quebec and increased its earnings contributions from fee-based businesses.
Also John Hancock acquired New York Life’s Retirement Plan Services (RPS) business in Apr 2015.The transaction will significantly increase Manulife’s retirement plan businesses. It is expected to accelerate the company’s expansion into the mid case and large case segments and fortify its leading position in the small case segment.
Manulife carries a Zacks Rank # 3 (Hold). Some better-placed players in the space are Sun Life Financial Inc. SLF, American Equity Investment Life Holding Co. AEL and StanCorp Financial Group Inc. SFG. While Sun Life and American Equity carry a Zacks Rank #1 (Strong Buy), StanCorp Financial carries a Zacks Rank #2 (Buy).
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