Empower has completed its acquisition of Milliman’s retirement administration business, adding approximately $80 billion in defined benefit assets under administration and more than $50 billion in defined contribution client assets.
The transaction, first announced on June 30, expands Empower’s workplace benefits capabilities across defined benefit, defined contribution and health and welfare administration. Milliman is retaining its actuarial consulting business.
Approximately 800 employees are joining Empower as part of the acquisition.
Empower is acquiring approximately 400 defined benefit plans representing 790,000 participants, along with more than 1,100 defined contribution plans representing about 750,000 participants.
The transaction also includes 100 health and welfare administration clients serving approximately 100,000 participants.
Following completion, Empower estimates that its overall platform serves approximately 22 million lives, administers more than $2.3 trillion in assets and supports 96,000 workplace plans.
The deal adds specialized defined benefit administration to Empower’s existing retirement, wealth management, stock plan and consumer-directed healthcare businesses.
Empower plans to use the expanded platform to connect retirement savings and income, equity compensation, healthcare savings and wealth management within a broader workplace offering.
The acquisition continues a growth strategy that has also included Personal Capital, MassMutual’s retirement business, Prudential’s full-service retirement business and Plan Management Corp., also known as OptionTrax.
Eversheds Sutherland served as legal counsel to Empower. K&L Gates represented Milliman, and Chesky Partners served as Milliman’s exclusive financial advisor.
KEY QUOTES:
“The addition of Milliman’s retirement administration business significantly expands our capabilities and strengthens the solutions we deliver to employers, advisors and the millions of people we serve. By bringing together defined benefit and defined contribution retirement, consumer-directed healthcare, wealth management and equity compensation, we’re helping employers support more of their employees’ financial needs through a single, integrated platform.”
Edmund F. Murphy III, President and Chief Executive Officer of Empower
“We are quite proud of our administration business and we are thankful for our dedicated professionals and for the clients who have trusted their plans to Milliman. One of Milliman’s bedrock values is opportunity. This transaction maximizes opportunity for our administrative professionals, and it creates opportunity for Milliman by allowing us to focus on our core businesses, including consulting, data analytics, and financial risk management.”
Dermot Corry, Chief Executive Officer of Milliman
