Great-West Lifeco to acquire wealth manager for US$825 million
Canadian financial services giant Great-West Lifeco Inc. announced that subsidiary Empower Retirement has entered into an agreement to acquire Personal Capital for US$825 million, and deferred consideration of up to US$175 million subject to achievement of growth objectives.
Empower, the second largest Defined Contribution (DC) record keeper in the U.S. based on the number of participants, is an important growth platform for Lifeco in both the retirement and retail wealth management markets. Personal Capital is a hybrid wealth manager that combines a leading-edge digital experience with personalized advice delivered by human advisors. The combination will bring together Empower’s leading retirement plan services and integrated financial tools, and Personal Capital’s rapidly growing, digitally oriented personal wealth management platform.
“This transaction supports Empower’s objective of accelerating growth in retail advice and wealth management for participants and is complementary to its objective of scaling its Defined Contribution retirement business both organically and through M&A,” said Paul Mahon, president and CEO.