Voya Financial has agreed to acquire the retirement plan business of OneAmerica Financial, which includes over $60 billion in assets under administration. The deal is expected to close on January 1, 2025.
The two companies have agreed to an upfront purchase price of $50 million and deferred consideration of up to $160 million, payable in the second quarter of 2026. Voya expects the deal to add at least $75 million to adjusted operating earnings taxes and over $200 million in net income in the first year after closing.
The deal increases Voya's total AUA to $580 billion, with 60,000 retirement plans and 7.9 million participants. It also adds $47 billion in assets in the retirement plan and middle market segments and about $15 billion in record keeping assets. It also increases Voya's overall account balance to nearly $38 billion, the company said.
OneAmerica serves 401(k), 403(b), 457, non-qualified deferred compensation plans and employee stock ownership plans.
“The acquisition adds an attractive strategic scale to Voya's full-service retirement business within Wealth Solutions, providing Voya with a broader set of capabilities that complement its existing product suite, including competitive plan administration of employee stock ownership and new opportunities to expand Voya's distribution footprint and deepen existing advisor relationships,” Voya said in a statement.
OneAmerica customers will have access to Voya's digital experience and core data storage services.