Empower Pensions Inc said Wednesday it has agreed to acquire the full-service retirement business of Prudential Investments for $3.55 billion. DealAs the retirement plan manager strengthens his client portfolio and accelerates its expansion.
Ed Murphy, CEO of Empower, said that with this transaction, which includes 4,300 retirement plans and 4 million participants, Empower now has 16 million customers in all major markets, including government, non-profit and for-profit businesses. The acquisition includes Individual Retirement Accounts, Defined Benefits, Non-Qualified and Rolling Accounts, as well as Prudential Accounts
Stable value and separate account investment products.
“We are committed to helping Americans save for retirement,” he said in an interview with MarketWatch. “There are opportunities for us to expand, grow and build on this mission.” He said Prudential’s work was a “very good fit” for Empower. “We believe we can deliver tremendous value to our participants, sponsors of the plan and now 16 million people are counting on us.”
Workplace plans are an important way for Americans to save for retirement, though Only about half of Americans access to one. Employer-sponsored plans, such as those run by Empower, allow workers to automatically and seamlessly put money into their futures through their paycheck. State governments are trying to imitate this structure themselves State-sponsored retirement plans, using investment vehicles similar to IRAs.
Empowerment is familiar with acquisitions. Last year, the company bought MassMutual Pensions in 2020. In 2014, Great-West and Putnam’s acquisition of JP Morgan Pensions created Empower.
Empower also bought online financial planning firm Personal Capital in a $1 billion deal in 2020, and said it would use the technology to help new participants retire through the Prudential deal.
The deal is expected to close in the first quarter of 2022, at which point Prudential retirement plan participants will still have access to their accounts as they currently are. Closer to moving, Murphy said, Empower will share a timeline for moving participants to their platforms, but there will be no “disruption.”
More to track …
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