Voya Financial is set to acquire OneAmerica’s full-service retirement business, in a move that will add $60 billion to Voya’s Wealth Solutions division.
OneAmerica’s full-service retirement plan business comprises of 401(k), 403(b), 457), and non-qualified deferred compensation plans and employee stock ownership plans. According to a release on the acquisition, the transaction will add approximately $47 billion of assets to Voya’s Emerging and Mid-Market segments and will add $15 billion of recordkeeping assets to the firm’s Large Market side.
In total, the agreement will increase Voya’s Wealth Solutions assets under administration (AUA) to $580 billion, with total retirement plan and participant count reaching 60,000 and 7.9 million, respectively.
“This announcement is an exciting opportunity to add scale and new capabilities to our Wealth Solutions business that will help advance our growth strategy by offering workplace benefits and savings solutions to more individuals,” said Heather Lavallee, CEO of Voya Financial, in a statement. “Voya is a purpose-driven company focused on supporting improved financial outcomes for our customers. OneAmerica is equally passionate about enabling financial security for their customers, making them a strong fit for Voya.”
“OneAmerica Financial is placing its retirement business in the hands of an organization that can deliver industry-leading offerings,” added Scott Davison, chairman, president and CEO of OneAmerica Financial, Inc. “For 60 years, we have been committed to serving the retirement market by helping our customers face every day with greater certainty. Voya is the firm to deliver on that commitment. We see this as a great opportunity for our customers and the OneAmerica Financial associates that will continue to grow with Voya, while we will focus on our remaining core product lines where we see tremendous growth potential.”
Voya states that its acquisition of OneAmerica’s retirement business reflects on its commitment to growing the firm’s Workplace Solutions business, which aims to support participants with workplace benefits and savings needs.
According to the announcement, the transaction expands the services Voya provides to workplace benefits and savings plans it serves across all markets, tax codes and employer sizes. This will also include OneAmerica’s employee stock ownership program.
The transaction is expected to close on Jan. 1, 2025, subject to customary closing conditions, including regulatory approvals. Voya says it intends to provide more details on the transaction during its third-quarter 2024 earnings call.
Citi is serving as financial advisor and Eversheds Sutherland LLP is serving as legal counsel to Voya in connection with this transaction. Goldman Sachs & Co. LLC is serving as financial advisor and Sidley Austin, LLP is serving as legal counsel to OneAmerica Financial Partners in connection with this transaction.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.