Empower’s $340 Million Bet on Retirement Administration
Empower, the retirement services powerhouse owned by Great-West Lifeco, has finalized a definitive agreement to acquire the retirement plan administration business of Milliman, Inc. The US$340 million transaction, unveiled in late 2024, signals a major expansion of Empower’s administrative footprint, folding Milliman’s specialized platform and client base into its own.
Capital Deployment and Regulatory Hurdles
For the Winnipeg-based Great-West Lifeco, this US$340 million expenditure represents a calculated play to fortify Empower’s standing as a premier U.S. retirement provider. The price tag covers the valuation of Milliman’s retirement and benefits administration arm, an entity that manages recordkeeping and administrative services for a wide array of plan sponsors. While the deal is settled in principle, it remains subject to customary closing conditions and regulatory approvals.
Scaling Infrastructure and Operational Synergy
Industry-Wide Shifts in Retirement Services
Transaction Specifications
- Transaction Value: The acquisition is valued at US$340 million.
- Entities Involved: Empower, a subsidiary of Great-West Lifeco, is the buyer; the seller is Milliman, Inc.
- Strategic Goal: The deal aims to increase Empower’s administrative scale and market share in the U.S. retirement services sector.
- Operational Shift: Milliman will divest its retirement and benefits administration arm to focus on its primary actuarial and consulting businesses.
- Next Steps: The transaction remains subject to customary regulatory review and closing procedures.