Empower Acquires Equity Compensation Platform OptionTrax

Empower, a retirement and wealth management services provider, has acquired Plan Management Corp., the developer of OptionTrax, a digital platform for workplace equity plan administration.

Based in West Conshohocken, Pennsylvania, PMC’s technology, proprietary products, services, intellectual property, licenses and contracts are now wholly owned by Empower under the terms of the agreement announced on Monday. The firms did not disclose terms of the deal.

OptionTrax specializes in solutions for administering and managing equity compensation, including stock options and restricted stock units. OptionTrax also supports plan design, grant management, financial reporting, vesting schedules and tax calculations.

The firm services more than 300 employers and manages about $62 billion in equity compensation plans.

“There’s significant unmet demand for equity compensation services,” Jonathan Miller, PMC’s founder, said in a statement. “By leveraging Empower’s scale and distribution network, we’ll be able to extend OptionTrax’s innovative offerings to a broader range of employers.”

Along with the acquisition, Empower has launched Empower Stock Plan Services LLC, led by Dave Gray, its executive vice president for enterprise solutions. Gray noted that many 401(k) clients have expressed interest in equity compensation services, and this acquisition reflects Empower’s continued expansion of its workplace benefits and wealth management offerings.

“Empower believes advisers and consultants will welcome the chance to work with Empower’s OptionTrax platform,” says Gray. “Our focus on multiple markets—across both publicly held and private corporates of all sizes—is unlike some other providers who choose to focus on only some segments.”

Following the acquisition, OptionTrax will be rebranded as “OptionTrax by Empower.” The firm’s services will also be integrated into Empower’s digital platform, expanding users’ ability to manage and view their full financial situation including equity compensation programs.

“We believe that consultants serving larger corporate clients will welcome our integrated workplace and financial planning experience for participants,” says Gray. “In addition, the delivery of equity compensation solutions will be additive to conversations between advisers serving smaller corporate plans, Empower and our shared clients.”