Great-West Financial, the American subsidiary of Great-West Lifeco, has reached an agreement to buy J.P. Morgan Retirement Plan Services’ large-market recordkeeping business.
Financial terms of the deal were not disclosed.
Upon completion of the acquisition, Great-West Financial will become the second-largest retirement services provider by participants in the American DC market, with nearly 6.8 million participants and US$387 billion ($427.2 billion) in recordkeeping assets.
The J.P. Morgan Retirement Plan Services business comprises 200 clients with approximately 1.9 million participants and US$167 billion in retirement plan assets. As part of the transaction, more than 1,000 staff and management affiliated with J.P. Morgan Retirement Plan Services will join Great-West Financial.
“This acquisition is consistent with Great-West Lifeco’s global business strategy of developing significant market positions in the sectors where we participate,” says Paul Mahon, president and CEO of Great-West Lifeco. “It further enhances our position as a leading retirement plan provider in the United States.”
The transaction is scheduled to close in the third quarter of 2014, subject to U.S. regulatory approval.
As part of this expanded emphasis on U.S. market opportunities, Great-West Lifeco announced in March that it appointed Robert L. Reynolds as president and CEO of Great-West Lifeco U.S., which owns Great-West Financial and Putnam Investments. Great-West Lifeco also announced that it will integrate Putnam Investments’ retirement business into that of Great-West Financial.
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