NEW YORK - The insurance company Mony Group Inc. said Thursday that it has a definitive agreement to buy Advest Group Inc. in a stock and cash transaction aimed at building its financial services clout.
The purchase price will be fixed five days before the transaction's closing date, using the shares' 10-day average closing price. Mony estimated the price could be about $31 per share, or a total of $275 million.
The transaction would bring Mony a retail network of more than 500 Advest financial advisers who offer financial planning, brokerage, insurance, trust, and asset management services to their high-income and high-net-worth clients in 15 states and the District of Columbia. On June 30, Advest's client assets totaled approximately $30 billion. The firm, headquartered in Hartford, Conn., also offers investment advisory and management services through its Boston Advisors subsidiary, as well as fixed income and equity capital markets services to clients in selected markets.
Advest stockholders may elect to receive the final purchase price in cash, shares of Mony common stock, or a combination. Mony and Advest expect the transaction to close in the fourth quarter.