Aquarian to Acquire Brighthouse Financial for $4.1 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Acquisition Confirmation: Aquarian Capital announced its acquisition of Brighthouse Financial for $4.1 billion, with a purchase price of $70 per share, representing a nearly 38% premium over Brighthouse's 90-day volume-weighted average price, indicating market confidence in the company's future prospects.
- Strategic Growth Opportunities: Aquarian plans to invest in Brighthouse's platform and distribution business, aiming to enhance customer service quality and strengthen investment management infrastructure, which will bring new growth momentum to the company.
- Privatization Process: Following the expected completion of the acquisition in 2026, Brighthouse will be taken private but will continue to operate as a separate entity, a strategy that will help Aquarian better integrate resources and optimize operations.
- Market Reaction Analysis: Despite the acquisition price of $70 per share, Brighthouse's stock is currently trading slightly below $65, reflecting market skepticism about the likelihood of the deal closing, while also presenting an opportunity for arbitrage investors.
BHF
$64.9+Infinity%1D
Analyst Views on BHF
Wall Street analysts forecast BHF stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BHF is 61.43 USD with a low forecast of 53.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
1 Buy
8 Hold
0 Sell
Hold
Current: 64.900
Low
53.00
Averages
61.43
High
70.00
Current: 64.900
Low
53.00
Averages
61.43
High
70.00
About BHF
Brighthouse Financial, Inc. is a provider of annuities and life insurance in the United States. The Company’s segments include Annuities; Life; Run-off, and Corporate & Other. The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. The Life segment consists of insurance products, including term, universal, whole and variable life products designed to address policyholders needs for financial security and protected wealth transfer, which may be on a tax-advantaged basis. The Run-off segment consists primarily of products that are no longer actively sold and are separately managed, including universal life with secondary guarantees, structured settlements, pension risk transfer contracts, certain Company-owned life insurance policies and certain funding agreements.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
