Talk of Wachovias interest in getting rid of Info-One/VARDS had been rife within the annuity industry. The venture is said to have lost more than $10 million last year. Furthermore, Wachovia has been disposing of non-core technology businesses.
The deal involves an undisclosed capital contribution by Wachovia, which will retain "a significant ownership interest" in the new company, according to a release. The new company will be headquartered in Herdon, Va., where AnnuityNet is currently located.
The failure of similar businesses, such as exchange-america and AnnuityScout, significantly contracted the field of players. AnnuityNet and Info-One/VARDS (formerly Pivot) emerged as the sole competitors in the space. Independent Financial Marketing Group, part of SunLife, has also started offering an annuity processing platform called Streampoint to third parties.