Empower Retirement to acquire Prudential's full-service retirement business in $3.55 billion deal

Empower Retirement is acquiring Prudential Financial Inc.'s PRU, +3.50% full-service status concern successful a woody valued astatine $3.55 billion, the companies said Wednesday successful a associated release. The woody is expected to adhd expertise, and an expanded merchandise portfolio to Greenwood Village, Colo.-based Empower's concern and thrust scale. The concern volition beryllium bolstered by $2.1 cardinal of superior done a operation of the equilibrium expanse of the acquired concern positive Empower superior and surplus. Prudential's status recordkeeping concern consists of much than 4,300 workplace savings plans, involving abut 4 cardinal program participants with $314 cardinal successful assets. The concern has much than 1,800 employees. "The acquisition volition let Empower to grow services to the broadening spectrum of workplace savings plans it present serves, which includes mega, large, mid-size and tiny firm 401(k) plans; authorities plans ranging successful standard from state-level plans to municipal agencies; not-for-profit 403(b) plans; and collectively bargained Taft-Hartley plans," said the release. The woody is expected to adjacent successful the archetypal 4th of 2022. Prudential volition usage proceeds of the woody for wide firm purposes and present expects to instrumentality $11 cardinal to shareholders done 2023, up from the $10.5 cardinal announced successful May. Prudential shares were up 1.5% premarket and person gained 27% successful the twelvemonth to date, portion the S&P 500 SPX, +1.52% has gained 15%.