Empower Retirement agreed to acquire Fifth Third Bank’s record-keeping business, Empower spokesman Stephen Gawlik confirmed Tuesday in an email.
Terms of the agreement were not disclosed.
Through the deal, Empower will provide record-keeping and administrative services while Fifth Third will continue to serve in a plan-level investment advisory capacity for most of the plans, providing independent fiduciary advisory services.
The Fifth Third retirement plan business comprised 476 retirement plans with $6.2 billion in assets as of Aug. 31.
The transaction is expected to be completed in the fourth quarter. When the deal closes, Fifth Third will continue to manage $4.2 billion in plan assets through its advisory services, Fifth Third Bank spokeswoman Shandi Grant said.
“This is an exciting evolution of the existing 16-year relationship between Empower and Fifth Third,” said Empower Retirement President and CEO Edmund F. Murphy III in a news release announcing the deal. “With the addition of these plans to Empower’s platform, we will continue to expand our capabilities for these savers, enhance our financial wellness and advice offerings, and accelerate our value creation for all our stakeholders.”
News of this acquisition follows Empower Retirement’s announcement earlier this month that it was acquiring Massachusetts Mutual Life Insurance Co.’s $167 billion retirement plan business for $3.4 billion.
Empower Retirement administered $667 billion in assets for more than 9.7 million retirement plan participants as of June 30. Upon completion of the deal, Empower is expected to have about $835 billion in assets under administration, according to Mr. Gawlick.