Despite economic uncertainty, historic inflation, and a host of other issues, a red-hot M&A market shows little sign of slowing, with yet another blockbuster deal announced Tuesday.
The Standard will buy Securian Financial’s retirement recordkeeping business, the companies said. The acquisition, subject to customary conditions, is expected to close this year.
“The two companies’ recordkeeping businesses have a complementary geographical footprint of customers and distribution partners.”
The Standard, founded in 1906 and headquartered in Portland, Ore., has offered retirement plans since 1982, emphasizing small to mid-sized plans.
Securian Financial, founded in 1880 and headquartered in St. Paul, Minn., offers a similar suite of defined contribution and defined benefit products and services.
The transaction—which excludes Securian Financial’s pension risk transfer and institutional retirement businesses—”will significantly expand the scale and competitive position of The Standard’s retirement offerings in the U.S. and will accelerate its diversification and growth in the retirement recordkeeping segment.”
As of Sept. 30, 2022, Securian Financial retirement plans served companies of all sizes with $17 billion in total assets under administration, compared to $29.3 billion for The Standard.
The two companies’ recordkeeping businesses have a complementary geographical footprint of customers and distribution partners. The newly combined business will provide enhanced product offerings that will expand relationships with plan sponsors and distribution partners. Securian Financial’s employees, sales team, and management who supported the recordkeeping business will join The Standard following the close of the transaction.
“We have been studying retirement plan growth opportunities in the U.S. market for some time, and Securian Financial stood out as a like-minded partner focused on customer-first service and deep relationships with plan sponsors and key distribution partners alike,” Dan McMillan, president and CEO of The Standard, said in a statement. “We look forward to a bright future and to welcoming Securian Financial’s Retirement Solutions employees, sales team, and management to The Standard.”
PJT Partners is acting as financial advisor and Locke Lord is acting as legal advisor to The Standard.
Goldman Sachs is acting as financial advisor and Eversheds Sutherland is acting as legal advisor to Securian Financial.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
