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MassMutual to Buy Cash Management Platform for RIAs: Deals

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Massachusetts Mutual Life Insurance Company has agreed to acquire Flourish, a technology platform for registered investment advisors, from Stone Ridge Asset Management.

Flourish is best known for its Flourish Cash program, which provides a sweep account clients can use to push cash in an account into an interest-bearing deposit account at one or more banks without any minimum deposit requirement. The Flourish program serves about 350 RIAs with about $600 billion in assets under management, according to MassMutual.

“Big #AdvisorTech news! Flourish was early player in high-yield cash mgmt for RIAs, along w/@maxmyinterest, @Galileo_Tweets, & SC_Funds,tweeted blogger and financial planner Michael Kitces, who also asked: “MassMutual gets RIA relationships for fee-based insurance exchange?”

“After the acquisition, Flourish will continue to serve RIAs, operating independently from MassMutual’s existing insurance and wealth management business,” the insurer said in a statement early Tuesday.

The fintech firm adds to the insurer’s product lineup and boosts its ability to “deliver digitally-enabled holistic financial planning while complementing its efforts to provide the best technology to its advisors and clients,” a MassMutual spokesperson explained later in the day via email.

“With that said,” Flourish is reviewing more “products and services across banking, wealth management and insurance … specifically built for financial advisors,” the spokesperson added. Flourish’s advisors “will be able to decide whether to make any new products, including any MassMutual insurance products, available to their clients on a client-by-client basis.”

MassMutual, which did not disclose the terms of the deal, aims to close the transaction by March 31 and to retain the Flourish team.

News of the Flourish acquisition comes four days after MassMutual agreed to pay $5 million for a minority stake in NYDIG, a New York-based company that provides institutional investment programs and technology for Bitcoin operations.

MassMutual also worked with NYDIG to buy $100 million in Bitcoin for its general investment account.

In other insurance-technology deal news:

SE2, a life and annuities insurance technology and services firm in Topeka, Kansas, said it has acquired Convergent Financial Technologies, a software developer in Hamilton, New Jersey, that develops cloud-based systems for life insurers and retirement services companies.

Convergent was founded in 2013. The company’s UV Cloud system helps customers manage variable product assets and calculate the unit values, according to SE2.

(Related: Bestow to Acquire Iowa-Based Insurer: Deals)

Customers can use the Convergent system to run mutual fund and alternative investment programs as well as annuities.

Convergent also has relationships with about 20 insurers and 180 fund companies. It helps its customers manage $250 billion in assets.

Boston Mutual Life Insurance Company, a life insurer in Canton, Massachusetts, has agreed to acquire the Information Technology Outsourcing Service from Onyx Data Solutions, a company based in Cheyenne, Wyoming.

The 26 employees at IT Outsourcing Service will go to work for Boston Mutual Life, according to Boston Mutual Life.

AmeriLife Group LLC, a life, health and retirement products distributor in Clearwater, Florida, says it has “purchased ownership and partnered with” the Senior Resource Group LLC, a field marketing organization.

AmeriLife also has acquired Senior Family Service, an insurance agency based in Philadelphia, and Right Choice, a bilingual field marketing organization based in Atlantic City, New Jersey.

The Senior Resource Group was founded in 2008. It distributes Medicare supplement insurance, Medicare Advantage plans, life insurance, final expanse plans and other products in 25 states.

AmeriLife is not saying how much it’s paying for the firms, but it says the owner of Senior Family services — Anthony Souders, Nicholas Germak and Elena Burenko — and the owners of Right Choice — Licy Bonilla and Eglis Craffey — will affiliate with Senior Resource Group.

Senior Resource Group will become part of AmeriLife’s life and health brokerage distribution division.

Terms of the transactions were not disclosed.

– Janet Levaux and Jeff Berman contributed to this report. 

— Read AmeriLife and Integrity Marketing Make Dealson ThinkAdvisor.

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