Great-West Lifeco Inc. subsidiary Empower has entered into a definitive agreement to acquire the retirement plan and benefits administration business of Milliman, Inc. for total consideration of US$340 million, the companies announced June 29, 2026.
Transaction Details and Scope
The acquisition, subject to regulatory approvals and customary closing conditions, will add approximately US$130 billion in client assets and 1.5 million plan participants to Empower's workplace solutions platform. The acquired business provides defined contribution (DC), defined benefit (DB), and health & welfare (H&W) administration services to corporate, public sector, trade labor union, multi-employer, and non-profit clients.
Empower expects the transaction to generate a fully synergized internal rate of return (IRR) in the mid-teens and be accretive to base earnings in Year 1, supported by recurring fee-based revenues, cost efficiencies, and an enhanced go-to-market strategy.
Strategic Rationale
The acquisition advances Empower's strategy of building an integrated workplace ecosystem. Milliman's DB capabilities are a strong strategic fit, enabling revenue diversification and accelerating growth. On a pro-forma basis, Empower's platform will serve 21 million participants with US$2.0 trillion in client assets.
“The acquisition reflects our disciplined approach to capital deployment and our focus on strengthening high-quality, capital-efficient growth platforms,” said David Harney, President and CEO of Great-West Lifeco. “It also aligns with our strategy of pursuing opportunities that add scale, expand and deepen capabilities, and generate attractive long-term returns, while leveraging the strong execution discipline and financial flexibility we have built across the organization.”
Enhanced Competitive Positioning
Empower gains a leading proprietary DB administration platform, positioning it to compete more effectively for bundled DC/DB opportunities, particularly in the large corporate plan segment where integrated offerings are highly valued. The acquisition also introduces an H&W benefits administration capability, enabling entry into a large and growing market while enhancing bundling opportunities for existing clients.
Edmund F. Murphy III, CEO of Empower, stated, “This transaction significantly strengthens our ability to compete and win across the full spectrum of retirement solutions by bringing a leading defined benefit platform in-house. The business’ strong reputation, high-quality client base, and scalable platform align closely with our long-term strategy. Together, we will unlock meaningful value through innovation, improved client outcomes, and expanded growth opportunities across defined contribution, defined benefits, and benefits administration.”
Impact on Empower's Platform
The acquisition adds depth and scale to Empower's workplace offering across DC, DB, and H&W administration. With a strong technology platform and deep domain expertise, the acquired business serves a diverse client base. The transaction is expected to close following regulatory approvals and other conditions.
