Empower Retirement says it has inked another major acquisition of retirement plan assets, this time with Fifth Third Bank.
The companies have reached a definitive agreement for Empower to acquire Fifth Third’s 476 retirement plans and provide recordkeeping and administrative services for them while Fifth Third continues to provide investment advisory services in a plan-level capacity for most of the plans and focuses on offering independent fiduciary advisory services, according to a press release from Empower.
The firms already have a 16-year relationship, Edmund Murphy, III, Empower Retirement president and CEO, says in the press release.
Fifth Third’s 476 workplace savings plans have around 100,000 participants and represented $6.21 billion in assets as of the end of August, Empower says. After the close of the deal, Fifth Third will continue managing $4.2 billion in plan assets, according to the press release.
The companies didn’t disclose the financial terms of the deal, which is scheduled to close in the fourth quarter of 2020, Empower says.
Empower launched in 2014 as a Great-West Lifeco subsidiary, after Great-West rebranded its retirement plan unit that also included the legacy recordkeeping businesses of affiliates Putnam Investments and JPMorgan.
As of the end of June, Empower administered $667 billion in assets on behalf of 9.7 million American workers and retirees through approximately 41,000 workplace savings plans, according to the latest press release.
Empower has since racked up several multi-billion dollar deals.
Earlier in September, MassMutual agreed to sell its $167 billion plan administration business to Empower for around $3.4 billion.
And last month, Empower closed its planned acquisition of the RIA Personal Capital for $825 million on closing, as well as up to $175 million “for planned growth.”
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