Empower Retirement today announced the completion of its acquisition of Personal Capital, following the receipt of regulatory approval required by the agreement and as announced on June 29, 2020.
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Empower Retirement has acquired Personal Capital in a $1 billion deal.
Upon completion of the acquisition, Personal Capital became a wholly owned subsidiary of Empower, which is acquiring Personal Capital for up to $1 billion in enterprise value, composed of $825 million on closing and up to $175 million for planned growth.
Empower is the nation’s second-largest retirement services provider,1 and Personal Capital is a digital-first registered investment adviser and wealth manager.
“This is an exciting day for Empower as we progress toward the evolution of an integrated platform to deliver personalized advice, financial wellness and comprehensive financial planning to millions of individual investors and retirement plan participants,” said Edmund F. Murphy III, President and Chief Executive Officer of Empower. “I know we will deliver on our vision of transforming the financial lives of those we serve. I am thrilled about the opportunities for our associates and the new colleagues that we welcome to Empower.”
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Personal Capital will be branded as “Personal Capital, an Empower Company” and will continue to provide its award-winning financial tools and investment solutions to its clients.
Personal Capital CEO Jay Shah will serve as President of Personal Capital, reporting to Murphy and will be a member of its executive team. A joint team from both enterprises will work together to integrate the Personal Capital and Empower offerings.
“We are delighted to consummate our combination with Empower today. Our shared vision of holistic, personalized, financial planning and solutions to effect better client outcomes only accelerates now that we’ve joined forces,” said Shah.
Sullivan & Cromwell LLP served as legal counsel and Morgan Stanley & Co. LLC and Rockefeller Capital Management served as financial advisors to Empower. Willkie Farr & Gallagher LLP served as legal counsel and Moelis & Company LLC served as financial advisor to Personal Capital.
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