Business
Great-West Lifeco subsidiary Empower Retirement announces agreement to acquire Personal Capital
Great-West Lifeco subsidiary Empower Retirement announces agreement to acquire Personal Ca...
About this update from Great-west Lifeco Inc.
[{"type":"text","content":"\n\n\n\nGreat-West Lifeco subsidiary Empower Retirement announces agreement to acquire Personal Capital\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nWINNIPEG, MB, June 29, 2020\n\n\n\n\n \n The acquisition is expected to accelerate Lifeco's growth and returns in the U.S. market\n\n \n \n\n \n \n TSX: GWO\n \n \n WINNIPEG, MB, June 29, 2020 /CNW/ - Great-West Lifeco Inc. (TSX: GWO) (\"Lifeco\") subsidiary Empower Retirement today announced it has entered into an agreement to acquire Personal Capital for up front consideration of US$825 million, and deferred consideration of up to US$175 million subject to achievement of target 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. \nThe transaction will benefit Lifeco and Empower in many ways including: \nPositions Empower with an additional growth platform, Personal Capital, a rapidly growing U.S. direct to consumer hybrid digital wealth manager; Leverages Personal Capital's platform to accelerate growth of Empower's existing DC-focused retail wealth management business; and, Enhances Empower's successful Defined Contribution business with the addition of Personal Capital's leading financial planning and financial wellness capabilities.\"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 Chief Executive O...