Health, wealth, and investment company Voya Financial has agreed to acquire mutual insurance organisation OneAmerica Financial’s full-service retirement plan business in a deal worth up to $210m.
Under the terms of the agreement, Voya Financial will make an upfront payment of $50m. An additional deferred consideration of up to $160m will be payable in Q2 2026, contingent on plan persistency and the achievement of transition incentives.
Through the acquisition, Voya Financial aims to enhance its wealth solutions division by adding significant scale to its full-service retirement business.
It will also provide Voya Financial with a broader set of capabilities that complement its existing product offerings, including competitive employee stock ownership plan administration.
Furthermore, the deal is expected to open new opportunities for Voya Financial to expand its distribution network and deepen relationships with financial advisers.
OneAmerica Financial’s full-service retirement plan business encompasses a range of services, including 401(k), 403(b), 457, non-qualified deferred compensation plans, and employee stock ownership plans.
The transaction will bring around $47bn in assets to Voya Financial’s full-service emerging and mid-market segments. It will also bolster Voya Financial’s presence in the large market, adding nearly $15bn in recordkeeping assets.
OneAmerica Financial chairman, president, and CEO Scott Davison said: “For 60 years, we have been committed to serving the retirement market by helping our customers face every day with greater certainty.
“Voya is the firm to deliver on that commitment. 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.”
Following the closing of the acquisition, Voya Financial’s Wealth Solutions defined contribution client assets will increase to $580bn, with the total number of retirement plans reaching 60,000 and the participant count rising to 7.9 million.
According to Voya Financial, the deal underscores Voya’s commitment to serving employers and retirement plans across all segments, including startup, emerging and mid, large, and mega market plans.
It also highlights the firm’s focus on expanding its Workplace Solutions business, enabling it to better support participants with their workplace benefits and savings requirements.
Moreover, the deal will broaden the range of services Voya Financial provides to workplace benefits and savings plans, covering various markets, tax codes, and employer sizes.
OneAmerica Financial’s competitive employee stock ownership programme, along with its network of adviser community, will further strengthen Voya Financial’s intermediary connections.
This will help in expanding Voya Financial’s footprint.
Voya Financial CEO Heather Lavallee said: “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.
“Voya is a purpose-driven company focused on supporting improved financial outcomes for our customers. OneAmerica is equally passionate about enabling financial security for their customers, making them a strong fit for Voya.”
Subject to customary conditions, including regulatory approvals, the deal is anticipated to be completed on 1 January 2025.
Citi acted as the financial adviser, and Eversheds Sutherland was legal counsel to Voya Financial. Goldman Sachs & Co. served as the financial adviser, with Sidley Austin as legal counsel for OneAmerica Financial Partners.
