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Saturday, July 24, 2021

Empower Retirement to take over Prudential Financial’s retirement business in billion-dollar deal

Empower Retirement announced Wednesday that it will acquire the retirement arm of Prudential Financial, the latest deal in a series the Greenwood Village company deals as it tries to gain a foothold on rivals.

Empower Retirement, in a transaction valued at $3.55 billion, will receive oversight of more than 4,300 workplace savings plans, with approximately 4 million plan participants and $314 billion in assets that administer Prudential, as well as 1,800 employees. .

Following the completion of the acquisition, which is expected to close in the first quarter of 2022, Empower will manage 71,000 workplace retirement plans with 16.6 million participants and assets of $1.4 trillion.

To put that number in perspective, direct federal student loan debt in the US is about $1.3 trillion.

Empower and Prudential share a commitment to meeting the financial needs of working Americans, their advisors and employers. This transaction will create an even stronger services organization at Empower, driven by the technology and expertise of our deep talent pool,” said Ed Murphy, Empower’s president and CEO, in a news release.

Last September, Empower Retirement announced the acquisition of Massachusetts Mutual Life Insurance Company’s retirement planning business in a deal valued at $3.35 billion. This gave it 26,000 workplace savings plans with 2.5 million participants and $167 billion in assets.

In June 2020, the company agreed to acquire Personal Capital, a Bay Area digital wealth management firm with a significant presence in Denver, in a $1 billion deal.

But its biggest deal, at least for Denver Broncos fans, came in September 2019, when Empower bought the naming rights to Mile High Stadium in a deal that lasted until 2039.

Empower Retirement, part of Great-West Life & Annuity Insurance Company, was formed in 2014 through a merger of three retirement plan administrators with approximately $400 billion in assets under their supervision. It has grown rapidly since then and is second only to Fidelity Investments in terms of the value of the retirement plan assets it oversees.

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