Empower retirement administration acquisition becomes a reality with Empower announcing its plans to acquire the retirement administration business of Milliman. This acquisition strategy improves its ability to administer defined benefit programs. In addition, Empower pension administration acquisition improves its integrated workplace benefits strategy across the globe.
Empower and Milliman, Inc. have entered into a binding agreement to carry out this transaction. This transaction is valued at $340 million, pending regulatory approvals and closing conditions. In the meantime, Milliman will keep its retirement and healthcare actuarial consulting services. It also intends to enter into a strategic relationship with Empower post-closing.
The Empower retirement services acquisition helps the company expand its workplace solutions offerings. The deal enhances the expertise of the company in terms of retirement, wealth management, and healthcare administration services. Also, it is consistent with the long-term growth strategy of the organization.
“Retirement security today requires more than savings alone. It depends on wealth accumulation, healthcare preparedness and reliable income throughout retirement,” said Edmund F. Murphy III, President and Chief Executive Officer of Empower. “The addition of Milliman’s defined benefit capabilities strengthens our ability to serve the evolving needs of the 20 million investors we support, the 93,000 retirement plan sponsors we serve and the financial advisors who help clients navigate increasingly complex financial decisions. This acquisition represents another important step in Empower’s vision of delivering integrated workplace solutions that help people build wealth, protect it and ultimately retire with confidence.”
Strategic Expansion Strengthens Workplace Benefits Platform
Additionally, this deal adds more than 800 employees to Empower’s payroll. They would assist in providing retirement services as well as servicing the clients. As a result, Empower strengthens its delivery capacity and service reach.
Empower estimates that at closure it will add to its roster roughly 400 defined benefit plans. These consist of almost 790,000 participants and $80 billion in managed assets. Also, Empower anticipates acquiring in excess of 1,100 defined contribution plans with 750,000 participants.
“We are proud of the business we have built and the relationships we have established with our clients,” said Dermot Corry, President and CEO of Milliman. “As we considered the next chapter for this business, it was important to find a partner with scale, commitment to the future of retirement and benefits administration, and the long-term vision necessary to continue serving our broad range of clients. We chose Empower because of its leadership position in retirement services and its ability to offer an enhanced range of services to our customers while providing excellent career opportunities for our employees. This transaction allows Milliman to sharpen our focus on our consulting, data analytics and AI businesses.”
Empower will additionally gain 100 more customers for its health and welfare administration services. They consist of 100,000 plan participants. Thus, the acquisition expands Empower’s multi-plan administration capacity greatly. He further added that the acquisition will help realize Empower’s vision of integrated workplace solutions, which can help people create, safeguard, and preserve their wealth.
Upon its completion, there is an expectation of a strategic partnership between the two firms in relation to actuarial services and defined benefits administration. This implies that the partnership will endure even after the transaction. The transaction is anticipated to be completed in the second half of 2026, contingent upon approvals.
Explore HR Tech News for the latest advancements in Human Resources Technologies and insightful updates from industry experts!
News Source: Businesswire.com
