Truist (TFC) buys Zaloni assets and expands data management skills

In an effort to expand data management capabilities, Truist Financial Corporation TFC has acquired the key strategic assets of Zaloni, which is an award-winning leader in providing data technology solutions. Following the acquisition, Zaloni’s offshore team will continue to serve its current customers in addition to providing technology delivery services to TFC.

Pursuant to 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 quickly 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, Chief Data Officer at Truist’s Enterprise Data Office, said, “Data and analytics are critical to meeting the needs of our customers, teammates and stakeholders. I’m thrilled that this deal includes the talented team that built the Arena platform and that they will continue their journey of data innovation as teammates with Truist.

Scott Case, Chief Information Officer at TFC, said, “Truist is investing to continually grow and evolve with the banking needs of our customers. In partnership with Truist Ventures, we have 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.

In an effort to support commission revenue growth, Truist has been open to strategic inorganic growth efforts.

Recently, TFC’s subsidiary, Truist Insurance Holdings, reached an agreement to acquire the country’s largest general benefits wholesale agency, BenefitMall, from funds managed by The Carlyle Group Inc. CG. Although the financial terms of the agreement have not yet been disclosed, the transaction is expected to close in the third quarter of 2022.

The BenefitMall acquisition is expected to add $150 million in annual revenue to Truist Insurance Holdings’ wholesale division. Serving customers for over 40 years, BenefitMall offers medical, dental, life, vision and long-term care benefits solutions through its network of 20,000 retail brokers. The company also provides employee benefits to more than 140,000 small and medium businesses across the country.

BenefitMall CEO Scott Kirksey said, “We are proud of the growth we have achieved through our partnership with Carlyle and look forward to the exciting opportunity ahead of us to continue to deliver the experience of Fastest, easiest, most reliable benefits sale on Truist. crew.”

Additionally, to further strengthen its insurance business, TFC acquired Kensington Vanguard National Land Services and insurance distribution platform, Constellation Affiliated Partners. Additionally, to increase its point-of-sale lending business, the company acquired Service Finance Company for $2 billion in cash.

Over the past year, shares of TFC have lost 13% compared to a 15.5% decline recorded by the industry.

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Currently, Truist carries Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic growth efforts by other companies

TowneBank TOWN has signed an agreement worth $56 million or $17.82 per share to acquire Farmers Bankshares, Inc. and its subsidiary Farmers Bank. Completion of the transaction is expected in the first quarter of 2023.

The transaction is expected to bolster TowneBank’s number one market share in the Virginia Beach-Norfolk-Newport News, MSA. Additionally, with the acquisition, TOWN will be able to grow Towne Insurance’s revenue.

Citizens Financial Group, Inc. CFG is also in the midst of a buyout campaign. Last July, the firm announced its intention to acquire Paladin Advisors, an independent and registered investment adviser, to strengthen its private wealth management business.

Earlier, CFG completed acquisitions of DH Capital LLC and Investors Bancorp In February, it completed takeovers of 80 East Coast branches and the national online deposit business of HSBC Bank USA, NA These takeovers and d others allow Citizens Financial to expand its product capabilities and geographic reach.

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Carlyle Group Inc. (CG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ramon J. Espinoza