Nov. 3, 2009 (Hugin AS) --
ING announced today that it has reached an agreement to sell three of
its U.S. independent retail broker-dealer units, which comprise
three-quarters of ING Advisors Network, to Lightyear Capital LLC.
Terms of the agreement were not disclosed. The transaction is not
expected to have a material impact on ING's earnings.
The transaction concerns Financial Network Investment Corporation,
based in El Segundo, Calif., Multi-Financial Securities Corporation,
based in Denver, Colo., PrimeVest Financial Services, Inc., based in
St. Cloud, Minn., and ING Brokers Network LLC, the holding company
and back-office shared services supporting those broker dealers,
which collectively do business as ING Advisors Network.
ING will retain ING Financial Advisers, Inc., based in Windsor,
Conn., and ING Financial Partners, Inc., based in Des Moines, Iowa.
ING chose to retain these broker-dealers because they are
closely-affiliated and play a key role in ING's strategy in the U.S.
which focuses on Retirement Services, Life Insurance and Rollover
Annuities.
"This transaction simplifies ING's structure in the U.S., and allows
us to focus resources and capital on our core Retirement Services,
Life Insurance, and Rollover Annuity businesses," said Tom McInerney,
member of the Management Board Insurance of ING Group. (NYSE:ING) "It is also in
the best interest of the broker-dealers, their employees, and the
affiliated representatives and financial institutions, to find a new
ownership structure. We believe that Lightyear will be an outstanding
owner of these broker-dealers and be able to ensure a promising
future for these businesses."
Lightyear is a recognized private equity firm in the U.S. that
specializes in investing in financial services companies. With a
successful track record of investing in well-managed, high-performing
companies poised for strong future growth, Lightyear currently
manages approximately US $3 billion in committed capital. Lightyear's
principals average more than 25 years of experience across the
financial services industry.
Financial Network, Multi-Financial, and PrimeVest together represent
one of the largest and most accomplished broker-dealer networks in
the U.S. industry. With strong and experienced management teams,
exceptional back-office technology, plus a diversity of field
management structures to accommodate a wide variety of financial
professionals' businesses, these broker-dealers have been leaders in
the broker-dealer industry for many years. In 2008, collectively, the
broker-dealers had more than 5,000 affiliated independent registered
representatives and generated total concession revenue of
approximately US $600 million.
