Great-West Lifeco subsidiary Empower closes acquisition of Prudential Financial retirement business

On April 4, 2022, Great-West Lifeco announced the successful completion of its U.S. subsidiary, Empower's acquisition of Prudential Financial Inc.'s full-service retirement business. This strategic transaction significantly expanded Empower's footprint in the U.S., now serving over 17.1 million retirement plan participants and managing assets totaling approximately US$1.4 trillion for nearly 71,000 workplace savings plans.

Paul Mahon, President and CEO of Great-West Lifeco, expressed satisfaction with the acquisition's contribution to the company's growth and value-creation goals. He highlighted that the deal not only accelerated growth but also resulted in immediate earnings enhancement due to the synergies in expenses and revenues. Mahon emphasized the benefits to Empower and its customers from the increased scale and enhanced capabilities, reinforcing Empower's leading position in the world's largest retirement market.

The acquisition involves a highly profitable Prudential business with a strong earnings profile, offering diverse capabilities across various plan types. Notably, it has a significant presence in the small-medium corporate market segment, which is particularly lucrative.

Merger & Acquisition
Banking/Finance
$ 4,450,000,000
Closed
04 April 2022