Voya Financial has agreed to acquire OneAmerica Financial’s retirement plan business, which encompasses over $60 billion of assets under administration. The deal is expected to close on Jan. 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 of pre-tax adjusted operating earnings and over $200 million of net revenue 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 of assets in the emerging and mid-market retirement plan segments and about $15 billion in recordkeeping assets. It also grows Voya’s general account 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 strategically attractive 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 employee stock ownership plan administration, and new opportunities to expand Voya’s distribution footprint and deepen its existing advisor relationships,” Voya said in a statement.
OneAmerica’s clients will gain access to Voya’s digital experience and core recordkeeping services.
