Voya Financial completes acquisition of OneAmerica Financial’s retirement plan business — now supports nearly 8 million participants

Rhea-AI Summary

Voya Financial (NYSE: VOYA) has completed the acquisition of OneAmerica Financial's full-service retirement plan business. This strategic move expands Voya's Wealth Solutions business to serve approximately 60,000 retirement plans supporting nearly 8 million participants, with Wealth Solutions Defined Contribution client assets growing to $670 billion.

The acquisition, announced in September 2024, strengthens Voya's Workplace Solutions growth strategy by adding scale to its full-service retirement business. It enhances Voya's capabilities with employee stock ownership plan administration and creates opportunities to expand distribution footprint and deepen advisor relationships.

Further details about the transaction will be provided during Voya's fourth-quarter and full-year 2024 earnings call in early February 2025.

Positive

• Significant scale increase to 60,000 retirement plans and 8 million participants
• Growth in Wealth Solutions assets to $670 billion
• Enhanced product capabilities including employee stock ownership plan administration
• Expanded distribution footprint and advisor relationships

Negative

• None.

Insights

M&A Specialist

This acquisition marks a substantial expansion in Voya Financial's retirement business segment, pushing total assets under management to $670 billion across approximately 60,000 retirement plans. The strategic value lies in both scale advantages and capability expansion, particularly in employee stock ownership plan administration. The timing is optimal given current market conditions where scale efficiencies are important for profitability in the retirement services sector. The deal strengthens Voya's competitive position against larger players like Fidelity and Empower. Expect immediate revenue synergies through cross-selling opportunities and cost synergies through operational consolidation. The integration risks appear manageable given the complementary nature of the businesses and Voya's track record in similar acquisitions.

Financial Analyst

The acquisition significantly enhances Voya's market position in the lucrative retirement plan administration space. The addition of nearly 8 million participants represents a 30% increase in Voya's participant base, providing substantial recurring revenue opportunities and increased operating leverage. The expanded distribution footprint and deeper advisor relationships should drive organic growth. For investors, this translates to higher earnings visibility and potential margin expansion through economies of scale. The timing of the transaction completion before year-end 2024 means the financial impact will be reflected in Q1 2025 results. Watch for management's detailed financial projections during the February earnings call, particularly regarding integration costs and synergy targets.

Market Research Analyst

This acquisition positions Voya strategically in the rapidly consolidating retirement services industry. The employee stock ownership plan (ESOP) administration capabilities gained are particularly valuable as ESOPs gain popularity among private companies for tax benefits and succession planning. The deal enhances Voya's competitive moat through increased scale and expanded service offerings. The retirement plan market is experiencing secular growth driven by an aging population and increased focus on retirement security. Post-acquisition, Voya's enhanced scale should improve its ability to invest in technology and service improvements while maintaining competitive pricing. This strengthened market position should support sustainable growth in assets under management and recurring fee income.

NEW YORK--(BUSINESS WIRE)-- Voya Financial, Inc. (NYSE: VOYA) announced today that it has completed its acquisition of the OneAmerica Financial, Inc. full-service retirement plan business.

As a result of the acquisition, Voya’s Wealth Solutions business now serves approximately 60,000 retirement plans supporting nearly 8 million participants, with Wealth Solutions Defined Contribution client assets now growing to $670 billion.¹ The acquisition, which was announced in September 2024, advances Voya’s growth strategy in Workplace Solutions by adding strategically attractive scale to Voya’s full-service retirement business within Wealth Solutions. The acquisition also provides Voya with a broader set of capabilities that complement its existing product suite, including competitive employee stock ownership plan administration, and new opportunities to expand the firm’s distribution footprint and deepen its existing advisor relationships.

“Completing this acquisition is an important milestone in our commitment to growing our Workplace Solutions businesses,” said Heather Lavallee, CEO, Voya Financial. “As we welcome the OneAmerica Financial retirement customers and associates to Voya, we look forward to working together with our talented and complementary new team members to continue to deliver the quality products and services our clients have come to know and expect from our collective teams. We are excited about the tremendous benefits this acquisition brings to our stakeholders as we move forward, including our colleagues, customers, and intermediary partners.”

Voya plans to provide further details about the transaction during its fourth-quarter and full-year 2024 earnings call in early February 2025.

Citi served as financial advisor and Eversheds Sutherland LLP served as legal counsel to Voya in connection with this transaction. Goldman Sachs & Co. LLC served as financial advisor, and Sidley Austin LLP served as legal counsel to OneAmerica Financial Partners.

1. Based on OneAmerica Financial, Inc. and Voya Financial data as of Sept. 30, 2024.

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth and investment company with approximately 9,000 employees who are focused on achieving Voya’s aspirational vision: “Clearing your path to financial confidence and a more fulfilling life.” Through products, solutions and technologies, Voya helps its 15.2 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company and a leading benefits administration provider, extends the reach of Voya’s workplace benefits and savings offerings by engaging directly with more than 12 million employees in the U.S. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is purpose-driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies^® by Ethisphere; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, Instagram and LinkedIn.

VOYA-IR VOYA-CF VOYA-RET

View source version on businesswire.com: https://www.businesswire.com/news/home/20250102888004/en/

Media Contact:

Laura Maulucci

Voya Financial

(508) 353-6913

Laura.Maulucci@voya.com

Investor Contact:

Mei Ni Chu

Voya Financial

(212) 309-8999

IR@voya.com

Source: Voya Financial, Inc.

FAQ

How many retirement plans and participants does Voya Financial manage after the OneAmerica acquisition?

After completing the OneAmerica acquisition, Voya Financial now manages approximately 60,000 retirement plans supporting nearly 8 million participants.

What is the total value of Voya's Wealth Solutions Defined Contribution client assets post-acquisition?

Following the OneAmerica acquisition, Voya's Wealth Solutions Defined Contribution client assets have grown to $670 billion.

When will Voya Financial provide more details about the OneAmerica acquisition?

Voya plans to provide further details about the transaction during its fourth-quarter and full-year 2024 earnings call in early February 2025.

What new capabilities does VOYA gain from the OneAmerica acquisition?

The acquisition provides Voya with enhanced capabilities including employee stock ownership plan administration, expanded distribution footprint, and deeper advisor relationships.

When was the OneAmerica acquisition by VOYA initially announced?

The acquisition was initially announced in September 2024.