A subsidiary of
The deal made by
"When we look to the
"It features a high degree of benefits from having scale, automation and digitization, so as we looked to the Empower business, we saw significant opportunity for growth."
After the deal is complete, the company predicts Empower's contribution to its overall earnings will grow to 30 per cent by the end of 2023.
Great-West also expects large expense and revenue synergies stemming from the deal will create long-term value for its shareholders after incurring
The deal's announcement comes as Great-West and Empower have been seeking similar opportunities and synergies throughout the COVID-19 pandemic.
Empower announced in September that it reached an agreement to acquire the retirement services business of
It said the
Prudential's retirement business covers 4,300 workplace savings plans with about four million participants and
The addition increases Empower's base to more than 16.6 million participants, 71,000 workplace savings plans and about
Mahon envisions moving Prudential and Massachusetts Mutual's customers over to Empower's platform.
These customers will also be able to access offerings being embedded in Empower programs from wealth management business
The combination of companies and offerings will be lucrative, Mahon believes.
"When (customers) look at their overall budgeting and their need for assessing their financial wellness, we can be there to help them with that," he said.
"So it's really a three-part story."
That story can't fully take shape until next year because the Prudential transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2022.
The announcement pushed Great-West's share price up by 1.61 per cent or
This report by
Companies in this story: (TSX:GWO)
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