Aegon, through an affiliate of its Transamerica unit, has reached an agreement to acquire Mercer’s American DC administration book of business for an undisclosed amount.
Upon completion of the acquisition, the DC business will transition to Transamerica Retirement Solutions.
Read: Mercer to buy PwC Canada’s pension windup business
“This latest strategic development supports our aim to further grow and diversify our customer base, while continuing to expand our offering of fee-based retirement solutions,” says Mark Mullin, a member of Aegon’s management board and president and CEO of Transamerica.
As a result of the acquisition, the number of retirement plan participants serviced by Transamerica will increase by 917,000 to about five million. Assets under administration will increase by US$71 billion to about US$216 billion.
In addition, Transamerica will become the preferred DC recordkeeping provider for Mercer’s total benefit outsourcing and total retirement outsourcing clients.
The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of this year.
Also read: