Empower Acquires Milliman’s Retirement Administration Business to Expand Service Offerings

Introduction

Empower has made headlines with its recent announcement regarding the acquisition of Milliman’s retirement administration business. This strategic move is poised to bolster Empower’s offerings in the retirement plan administration space, providing a more comprehensive suite of services to its clients. The integration of Milliman’s expertise is expected to enhance Empower’s market position significantly.

Deal Summary

In a notable development within the retirement services industry, Empower has reached a definitive agreement to acquire the retirement administration business of Milliman, Inc. This acquisition is anticipated to close in the second quarter of 2022, subject to the usual regulatory approvals and closing conditions. Empower, under the leadership of President and CEO Ed Murphy, aims to leverage this acquisition to enhance its service offerings and expand its footprint in the retirement plan administration sector.

Milliman, a respected name in actuarial, consulting, and administration services, has built a strong reputation in the retirement administration space. The company’s Retirement Administration Practice Leader, John D. McCarthy, expressed enthusiasm about the acquisition, stating that it would enable both firms to better serve clients while fostering innovation in client experiences.

Buyer Profile

Empower is a prominent player in the retirement services industry, managing over $1 trillion in assets and serving more than 12 million retirement plan participants. The firm is committed to helping individuals achieve secure financial futures through a diverse range of retirement solutions tailored to client needs.

In addition to the acquisition of Milliman’s retirement administration business, Empower has been active in the M&A space, having completed several other transactions in the past six months, including:

• The acquisition of a competitor’s retirement services division to enhance its market share.
• A strategic partnership with a tech firm to innovate retirement planning tools.
• The acquisition of a niche provider specializing in defined benefit plans, further diversifying its service offerings.

These recent activities demonstrate Empower’s commitment to growth through strategic acquisitions and partnerships.

Conclusion

This acquisition of Milliman’s retirement administration business is a clear indicator of the ongoing consolidation trend within the retirement services industry. For investors, operators, and founders, this deal underscores the significance of strategic alignments in enhancing service capabilities and improving client experiences in an increasingly competitive market.