AXA Financial to Acquire MONY Group for $1.5 Billion

Strategic Insights -

AXA Financial, Inc., has announced that stockholders of The MONY Group have voted to approve a merger with AXA Financial, a leading financial services organization. The cash transaction is valued at approximately $1.5 billion and will acquire 100% of MONY, a financial services firm that provides protection, accumulation, and retail brokerage products through advisory and wholesale distribution channels.

Key Takeaways:

  • The merger is subject to certain required regulatory approvals and other conditions, and is expected to close late second quarter or early third quarter of 2004.
  • MONY stockholders will receive $31.00 in cash from AXA Financial, plus dividends of approximately $0.33 to $0.35 from MONY, for each share of MONY common stock.
  • The acquisition represents a significant expansion of AXA Financial's presence in the U.S. financial services marketplace.
  • The combined organization will have a strong distribution platform, with a presence in wholesale and retail channels.
  • The transaction will add approximately 1.4 million life insurance policies in force and $17.6 billion of assets under management to AXA Financial.
  • MONY's life insurance products, together with its investment management products and services, will immediately enhance AXA Financial's already strong product portfolio across all distribution channels.
  • The acquisition is expected to create significant growth opportunities for AXA Financial, particularly in life insurance products and retail brokerage.
  • Christopher "Kip" Condron, president and chief executive officer of AXA Financial, stated that the acquisition represents "a terrific opportunity for AXA Financial to add scale by acquiring an organization with outstanding distribution capabilities and products, an enviable client base, substantial assets under management, and a solid work force."

Statistics:

  • $1.5 billion - the value of the cash transaction to acquire 100% of The MONY Group.
  • $31.00 - the cash payment AXA Financial will make to MONY stockholders for each share of MONY common stock.
  • $0.33 to $0.35 - the estimated dividend payment from MONY for each share of MONY common stock.
  • 1.4 million - the number of life insurance policies in force that will be added to AXA Financial's portfolio.
  • $17.6 billion - the value of assets under management that will be added to AXA Financial's portfolio.
  • $81 billion - the full-year 2003 revenues of AXA Group.
  • $979 billion - the assets under management of AXA Group as of the end of 2003.

Sources:

  • PRNewswire - May 18
  • AXA Financial, Inc. - March 31, 2004
  • AXA Group - 2003 Annual Report
  • SEC - Form 10-K for AXA Financial, Inc. (December 31, 2003)
  • SEC - Form 10-K for MONY Group (December 31, 2003)