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Empower to acquire Personal Capital
Posted on Monday, 29 June 2020 13:47
Empower Retirement has signed off on a deal to purchase US-based investment manager and wealth manager Personal Capital for USD 1.00 billion.
The consideration includes an upfront sum of USD 825.00 million and USD 175.00 million which will be used for the buyer’s planned growth.
Subject to regulatory approvals and customary closing conditions, the deal is slated to complete during the second half of 2020.
Formed in 2009, Personal Capital’s wealth management platform allows customers to gain an accurate view of their net worth, allocate savings and track cashflow within the last 30 days.
Its retirement planner technology helps clients create a retirement plan by selecting sources of income such as social security, pensions and windfall and uses data to show much they can afford to spend each month.
Since its inception, the group has added over 2.50 million customers to its platform and tracked more than USD 771.00 billion in household assets.
Upon closing, the target will be rebranded as Personal Capital, an Empower company.
The combination of the two businesses will help create a stronger enterprise with the scale, capability and technology to serve individual’s savings, financial and retirement needs.
Furthermore, the deal will expand the enlarged group’s retirement scheme offering and accelerate the capture of rollovers and other out-of-plan assets.
Edmund F Murphy, president of Empower, said: “In addition, the retirement plan sponsors and advisors we serve will be able to offer their plan participants a more powerful retirement benefit that is highly valuable in a competitive labour market.”
Headquartered in Denver, the buyer claims to be the second-largest retirement plan record keeper by total participants in the US.
It administers USD 656.00 billion in assets for small, midsized and large corporations, non-profit entities and individual retirement accounts, among others.
Empower has made investments in companies such as City Clinic, Fidelis Research, Cremio and Mammoth DB.
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