NU Online News Service, June 5, 2003, 12:31 p.m. EDT – Financial Industries Corp., Austin, Texas, says it is acquiring three companies that sell financial services to teachers for up to $6.9 million in cash and stock.
Financial Industries owns an actuarial consulting firm and a unit that sells and underwrites life insurance and annuities.
The companies acquired are:
? Total Compensation Group Consulting Inc., Austin, a fee-based registered investment advisor that designs and runs teacher retirement plans.
? Paragon Benefits Inc., Austin, a firm that sells annuities, life insurance and supplemental insurance to teachers, city employees and state employees through 20 managed agents.
? JNT Group Inc., Webster, Texas, a company that administers retirement plans for more than 60 school districts.
Financial Industries is folding the three companies into FIC Financial Services Inc., a new, wholly owned subsidiary that will have 32 employees and a main office in Austin, Financial Industries says.
William Tedrow will be the president of FIC Financial, and the founders of each of the acquired companies has agreed to work for the subsidiary, Financial Industries says.
Financial Industries is paying 56% of the price for the acquired companies in cash and up to 44% in Financial Industries stock. The deal is structured so that the current owners of the acquired companies will get the Financial Industries stock only if the acquired companies meet specified sales targets, Financial Industries says.