Empower Retirement agreed to buy digital wealth management company Personal Capital, Empower said Monday.
Empower plans to acquire the company for as much as $1 billion, including $825 million at closing and up to $175 million subject to meeting growth targets, according to a news release.
The deal is expected to close in the second half of the year subject to regulatory approvals.
The acquisition of Personal Capital's digital wealth management platform will allow Empower to give retirement plan participants a "360-degree" view of their finances and create opportunities for plan sponsors to offer improved financial wellness benefits, which in turn will give plan sponsors an edge in recruiting, Empower said.
Empower administers some 40,000 workplace retirement savings plans with $656 billion in assets. Personal Capital manages more than $12 billion in assets and has more than 2.5 million users.
At the close of the transaction, Personal Capital will be branded as Personal Capital, an Empower Company. Personal Capital CEO Jay Shah will serve as president of Personal Capital and report to Empower President and CEO Edmund F. Murphy III. Mr. Shah also will be a member of the Empower executive team.