Enable Retirement to Acquire Prudential’s Full-Service Retirement Business in $3.55 Billion Deal

Empower Retirement Acquires Prudential Financial Inc.’s PRU,
full-service retirement company in a $3.55 billion deal, the companies said in a joint release Wednesday. The deal is expected to add expertise and a comprehensive product portfolio to Greenwood Village, Colo. Empower’s based business and scaling up. The company will be supported with $2.1 billion in capital through a combination of the acquired company’s balance sheet plus Empower capital and surplus. Prudential’s pension administration consists of more than 4,300 workplace savings plans, involving approximately 4 million plan participants with assets of $314 billion. The company has more than 1,800 employees. “The acquisition enables Empower to expand services into the broader spectrum of workplace savings plans it now serves, including mega, large, medium and small 401(k) business plans; government plans ranging in scale from state-level plans to municipal agencies, non-profit 403(b) plans, and collectively negotiated Taft-Hartley plans,” the release read. The deal is expected to close in the first quarter of 2022. Prudential will use the proceeds from the deal for general corporate purposes and now expects to return $11 billion to shareholders through 2023, up from the $10.5 billion announced in May. Prudential stocks rose 1.5% premarket and are up 27% in the year so far, while the S&P 500 SPX,
won 15%.