Voya to Buy One America Financial’s $60B Retirement Plan Biz
Voya Financial has agreed to buy OneAmerica Financial’s full-service retirement business, adding $60 billion in assets under administration (AUA) to Voya’s Wealth Solutions division and bringing the total AUA to $580 billion.
The upfront acquisition price is $50 million. There is also deferred consideration of up to $160 million, payable in the second quarter of 2026, subject to “plan persistency and transition incentives,” according to Voya.
The deal, which is expected to close on January 1, 2025, will boost retirement plan coverage to 60,000 and participant pool to 7.9 million and 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.
The acquisition will add $47 billion to Voya’s emerging and mid-market plan sponsor segments and employee stock ownership plan administration and new distribution partnerships.
“OneAmerica’s broad range of retirement capabilities, combined with our existing product suite and digital solutions, provides an opportunity to extend Voya’s reach across all market segments to deliver health, wealth and investment solutions through the workplace and institutions.” said Rob Grubka, CEO, Workplace Solutions, Voya Financial.
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.
Citi is serving as financial advisor and Eversheds Sutherland LLP is serving as legal counsel to Voya in connection with this transaction. Goldman Sachs & Co. LLC is serving as financial advisor and Sidley Austin, LLP is serving as legal counsel to OneAmerica Financial Partners in connection with this transaction.
