Empower Retirement announced Tuesday that it has agreed to acquire the retirement plan business of Massachusetts Mutual Life Insurance Co. in a deal valued at $3.35 billion.
The Greenwood Village company currently administers 41,000 workplace savings plans with 9.7 million participants and $667 billion in assets. The acquisition, expected to be completed later this year, will add 26,000 workplace savings plans with 2.5 million participants and $167 billion in assets.
Empower Retirement will pay $2.35 billion in what is known in the insurance business as a ceding commission to MassMutual and put up another $1 billion in capital to support obligations tied to the plans it is adding.
“Together, Empower and MassMutual connect a broad spectrum of strength and experience with a shared focus on the customer. We are excited about the opportunity to reach new customers and serve even more Americans on their journey toward creating a secure retirement,” said Edmund Murphy III, Empower Retirement’s president and CEO said in a statement.
Empower Retirement is the nation’s second-largest administrator of retirement plans. Last September, it acquired the naming rights to Mile High Stadium and in June it announced it would acquire Personal Capital, a Bay Area digital wealth management firm with a significant presence in Denver, in a deal that could reach close to $1 billion.
Source: Read Full Article