The parent company of Woodbury Financial Services has agreed to sell the Oakdale-based independent broker-dealer to insurance giant American International Group, Inc. (AIG).

Woodbury, which is a subsidiary of The Hartford Financial Services Group, Inc., will become a part of New York-based AIG’s broker-dealer business, Advisor Group, Hartford announced Wednesday.

Financial terms of the deal were not announced, but The Wall Street Journal reported that AIG will pay the Hartford, Connecticut-based company as much as $90 million for Woodbury. However, that price could reportedly be revised down to $37.5 million if Woodbury falls short of revenue targets before the deal closes. Hartford will reportedly also receive an additional $25 million if Woodbury performs well and achieves certain goals in the two years after the deal closes, which is expected to happen by the end of the year.

Woodbury sells insurance, mutual funds, annuities, and stocks and bonds through a network of about 1,400 contracted financial advisors across the country, and it has about 200 home-office employees. After the acquisition is complete, Woodbury will operate as one of four independent broker-dealers in the Advisor Group network while retaining its name and brand.

“Woodbury Financial and Advisor Group are a natural fit, with complementary business models and a shared view of providing an open architecture platform for advisors within the independent broker-dealer segment,” Woodbury President and CEO Patrick McEvoy said in a statement. “The firm and our registered [representatives] are uniquely positioned to provide the solutions many of today’s investors need, and we plan to leverage this expertise across the Advisor Group network.”

McEnvoy will continue to lead Woodbury as president and CEO. A Hartford spokesperson was not available for comment Wednesday, but according to a Star Tribune report, the companies do not expect any layoffs as a result of the acquisition.

The deal is one of three planned transactions that Hartford announced in March and part of a decision to focus on its property-casualty insurance, group-benefits, and mutual-funds businesses. The sale of Woodbury is expected to generate a “modest gain” for Hartford and won’t have a material impact on its 2013 earnings, Hartford said.

Woodbury Financial’s revenue totaled $254 million last year, about 12 percent of which came from insurance products, according to the Star Tribune.

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