Voya Financial, Inc. (NYSE: VOYA) has officially completed its acquisition of the full-service retirement plan business of OneAmerica Financial, Inc. This milestone marks a significant step in Voya’s strategy to enhance its capabilities and scale within the retirement solutions space.
Expanded Reach and Capabilities
With the completion of this acquisition, Voya’s Wealth Solutions division now manages approximately 60,000 retirement plans, supporting nearly 8 million participants. The Defined Contribution client assets within Voya’s Wealth Solutions have grown to $670 billion as a result. This expansion underscores Voya’s commitment to bolstering its Workplace Solutions business and aligns with its broader growth strategy.
The acquisition, initially announced in September 2024, brings strategically valuable scale to Voya’s retirement business. In addition to increasing its footprint, the deal enhances Voya’s capabilities with complementary services, such as competitive employee stock ownership plan administration. These enhancements not only diversify Voya’s product offerings but also open doors to new distribution opportunities and strengthen relationships with financial advisors.
Leadership Perspective
Heather Lavallee, CEO of Voya Financial, expressed enthusiasm about the acquisition’s potential to create value for all stakeholders. “Completing this acquisition is an important milestone in our commitment to growing our Workplace Solutions businesses,” Lavallee stated. “As we welcome the OneAmerica Financial retirement customers and associates to Voya, we look forward to collaborating with our talented new team members. Together, we aim to deliver the high-quality products and services that clients have come to expect from both our organizations.”
Lavallee emphasized that the acquisition positions Voya to provide even greater benefits to its colleagues, customers, and intermediary partners. The integration of OneAmerica’s retirement plan business is expected to enhance Voya’s ability to meet evolving client needs in a competitive marketplace.
Strategic Benefits
The acquisition strengthens Voya’s market position in the retirement solutions sector by:
- Expanding Scale: With nearly 8 million participants across 60,000 retirement plans, Voya significantly broadens its reach.
- Enhancing Capabilities: The addition of employee stock ownership plan administration and other services complements Voya’s existing offerings.
- Increasing Distribution Opportunities: By expanding its footprint, Voya gains access to new markets and further deepens its relationships with financial advisors.
- Driving Growth: The deal aligns with Voya’s growth strategy, ensuring the company remains a leader in providing innovative solutions for retirement planning.
Integration and Future Plans
As Voya integrates OneAmerica’s retirement business, it will focus on ensuring a seamless transition for clients and employees. The company plans to leverage the expertise and resources of its new team members to drive innovation and enhance customer satisfaction.
Further details about the acquisition will be shared during Voya’s fourth-quarter and full-year 2024 earnings call, scheduled for early February 2025. This presentation will provide insights into the financial and operational impacts of the transaction.
Advisory Roles
The transaction was supported by leading financial and legal advisors. Citi acted as the financial advisor for Voya, while Eversheds Sutherland LLP provided legal counsel. On the OneAmerica side, Goldman Sachs & Co. LLC served as the financial advisor, with Sidley Austin LLP offering legal counsel.
A Transformative Deal
As part of its broader corporate strategy, Voya remains committed to sustainability and inclusion. The company continues to integrate Environmental, Social, and Governance (ESG) considerations into its business practices. This acquisition aligns with Voya’s goal to create positive societal impact while delivering value to stakeholders.
The inclusion of OneAmerica’s diverse team and expertise further enriches Voya’s talent pool, enabling the company to drive innovation and inclusivity in its offerings. By fostering a culture of collaboration and shared purpose, Voya aims to set a benchmark for excellence in the financial services industry.
Technological Advancements
Technology plays a pivotal role in Voya’s strategy to enhance client experiences. The acquisition enables Voya to integrate advanced platforms and tools from OneAmerica, further streamlining processes and improving service delivery. Features such as real-time account management, personalized dashboards, and AI-driven insights are expected to elevate the participant experience.
Moreover, Voya is exploring opportunities to leverage blockchain and other emerging technologies to ensure transparency, security, and efficiency in retirement plan administration. These advancements not only enhance operational efficiency but also build trust among participants and plan sponsors.
Synergies from the Acquisition
The integration of OneAmerica’s retirement business brings synergies that go beyond scale and capabilities. Shared expertise and resources will enable Voya to:
- Innovate Faster: Combining R&D efforts to develop cutting-edge products and services.
- Optimize Costs: Streamlining operations to achieve greater efficiency and cost-effectiveness.
- Enhance Customer Experience: Leveraging insights from both organizations to deliver a superior client journey.
A Transformative Deal
This acquisition represents a transformative moment for Voya Financial. By incorporating OneAmerica’s retirement plan business, Voya solidifies its position as a leader in the retirement solutions industry. The expanded scale and enhanced capabilities set the stage for continued growth and innovation, ensuring Voya can better serve its clients’ needs now and in the future.
Data Snapshot
As of September 30, 2024, combined data from OneAmerica Financial and Voya Financial highlighted the substantial assets and participant base that this acquisition brings to Voya. With $670 billion in Defined Contribution client assets and nearly 8 million participants, Voya is well-positioned to deliver comprehensive retirement solutions on an even larger scale.
Voya’s acquisition of OneAmerica’s retirement plan business underscores its commitment to growth, innovation, and excellence in the financial services industry. By enhancing its capabilities and expanding its reach, Voya is poised to provide even greater value to its clients, partners, and stakeholders. As the company integrates its new resources and expertise, it remains focused on delivering the exceptional service and solutions that have become its hallmark.
In the months to come, stakeholders can expect Voya to continue leveraging this acquisition to drive long-term success and reinforce its leadership in the retirement planning market.
Broader Industry Context
The acquisition comes at a time of significant transformation within the retirement solutions industry. With evolving regulations, increased focus on retirement readiness, and growing demand for innovative solutions, companies like Voya are investing in strategic acquisitions to stay ahead of the curve.
According to industry reports, the retirement services market is projected to grow significantly over the next decade. Factors such as an aging population, heightened awareness of financial wellness, and the increasing adoption of digital platforms are driving this growth. By acquiring OneAmerica’s retirement business, Voya positions itself to capitalize on these trends and deliver comprehensive solutions to its expanding client base.
Enhanced Focus on Financial Wellness
In addition to traditional retirement planning, Voya is placing increased emphasis on holistic financial wellness. The integration of OneAmerica’s capabilities provides an opportunity to offer a broader suite of services, including:
- Employee Stock Ownership Plans (ESOPs): These plans offer employees an ownership stake in their companies, fostering engagement and long-term financial security.
- Financial Education Tools: Enhanced tools and resources to empower participants with knowledge and insights to make informed decisions about their financial future.
- Customized Solutions: Tailored offerings to meet the unique needs of different industries, employers, and participant demographics.
Commitment to Sustainability and Inclusion
As part of its broader corporate strategy, Voya remains committed to sustainability and inclusion. The company continues to integrate Environmental, Social, and Governance (ESG) considerations into its business practices. This acquisition aligns with Voya’s goal to create positive societal impact while delivering value to stakeholders.
The inclusion of OneAmerica’s diverse team and expertise further enriches Voya’s talent pool, enabling the company to drive innovation and inclusivity in its offerings. By fostering a culture of collaboration and shared purpose, Voya aims to set a benchmark for excellence in the financial services industry.
Technological Advancements
Technology plays a pivotal role in Voya’s strategy to enhance client experiences. The acquisition enables Voya to integrate advanced platforms and tools from OneAmerica, further streamlining processes and improving service delivery. Features such as real-time account management, personalized dashboards, and AI-driven insights are expected to elevate the participant experience.
Moreover, Voya is exploring opportunities to leverage blockchain and other emerging technologies to ensure transparency, security, and efficiency in retirement plan administration. These advancements not only enhance operational efficiency but also build trust among participants and plan sponsors.
A Transformative Deal
This acquisition represents a transformative moment for Voya Financial. By incorporating OneAmerica’s retirement plan business, Voya solidifies its position as a leader in the retirement solutions industry. The expanded scale and enhanced capabilities set the stage for continued growth and innovation, ensuring Voya can better serve its clients’ needs now and in the future.
Data Snapshot
As of September 30, 2024, combined data from OneAmerica Financial and Voya Financial highlighted the substantial assets and participant base that this acquisition brings to Voya. With $670 billion in Defined Contribution client assets and nearly 8 million participants, Voya is well-positioned to deliver comprehensive retirement solutions on an even larger scale.
