Great-West Lifeco Inc. GWO-T has signed a deal to buy Milliman Inc.’s retirement plan and benefits administration business for US$340-million.
The business being acquired provides administration services for defined contribution and defined benefit pensions and health and welfare benefits.
Great-West says the deal will help grow its Empower subsidiary, adding about US$130-billion in client assets and 1.5 million plan participants.
The acquisition is expected to deliver about US$20-million of cost synergies within three years, the company says.
Total integration costs are expected to be about US$50-million.
The deal is expected to close in the second half of this year, subject to customary closing conditions and regulatory approvals.