WINNIPEG _ A subsidiary of Great-West Lifeco Inc. has signed a deal to buy U.S. investment manager Personal Capital in a deal worth at least US$825 million.
Under the agreement, Empower Retirement will pay US$825 million, plus up to an additional US$175 million subject to the achievement of target growth objectives.
Great-West says Personal Capital is a hybrid wealth manager that combines a digital experience with personalized advice delivered by people.
The company says the deal will combine Empower retirement plan services and financial tools with Personal Capital’s digitally oriented personal wealth management platform.
IGM Financial Inc., a sister company to Great-West, holds a stake in Personal Capital and says it expects US$176.6 million in proceeds from the deal, plus up to an additional $24.6 million in possible additional payments.
The transaction is expected to close in the second half of 2020, subject to required regulatory approvals.