Great-West Lifeco's U.S. subsidiary, Empower Retirement, has acquired Prudential Financial's retirement business for $4.45 billion.
The deal comes 10 months after the Winnipeg-based company made a similar-sized deal, acquiring the retirement services business of Massachusetts Mutual Life Insurance Company.
Empower is now the second largest player in the U.S. retirement services market by far. When this deal closes it will give Empower $1.4 trillion in assets under administration, more than twice as much as the third largest player in the field.
When the deal is finalized it will mean Empower will be managing retirement plans for more than 16.6 million Americans in about 71,000 workplace savings plans.
The company expects the deal will immediately add to Great-West Lifeco's profitability.