Voya to Acquire OneAmerica’s Retirement Plan Business
Voya will add more than $60 billion in AUA and new capabilities, including employee stock ownership plans.
Voya Financial Inc. has agreed to acquire OneAmerica Financial Inc.’s retirement plan business as the decades-long consolidation of recordkeepers continues.
The acquisition will add $60 billion in assets under administration to Voya’s Wealth Solutions division, boosting its total AUA to $580 billion, retirement plan coverage to 60,000 and participant pool to 7.9 million. The deal is expected to close on January 1, 2025, subject to closing conditions and regulatory approvals.
The upfront purchase price for the deal was $50 million, according to an investor relation’s presentation on Voya’s website. There is also deferred consideration of up to $160 million payable in the second quarter of 2026, contingent on “plan persistency and transition incentives.”
The deal is projected to deliver at least $75 million of pre-tax adjusted operating earnings and over $200 million of net revenue in first year post-closing.
Upon close of the deal, a “majority of the OneAmerica Financial full-service retirement plan employees will be part of the Workplace Solutions team at Voya,” a Voya spokesperson said by email.
The acquisition will bolster Voya’s emerging and mid-market plan sponsor segments, with $47 billion in assets, according to the announcement. It will also add capabilities such as employee stock ownership plan administration and new distribution partnerships.
“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, Voya’s CEO, in a statement.
OneAmerica is a mutual insurance organization that sells to companies and individuals, including in the annuity space. Its retirement plan business is made up of 401(k), 403(b), 457, nonqualified deferred compensation plans and employee stock ownership plans.
“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,” Scott Davison, chairman, president and CEO of OneAmerica, said in a statement.
The deal comes as recordkeepers grapple with fee pressure and a host of needs from plan sponsors, plan advisers and consultants. In August, TIAA announced a deal with Accenture to leverage the firm’s technology resources to more quickly innovate and evolve its own recordkeeping services; that deal has some 1,5000 employees in the U.S. and India with an offer to shift to Accenture.
For Voya, Citi is the financial adviser on the deal and Eversheds Sutherland LLP is legal counsel. For OneAmerica, Goldman Sachs & Co. LLC is the financial adviser and Sidley Austin LLP is legal counsel.
Further details of the deal are on Voya’s investor relations website: investors.voya.com.