Empower Retirement is reportedly purchasing San Francisco-based fintech Personal Capital for $825m upfront, plus $175m if growth goals are achieved over two years.
According to PitchBook, Personal Capital was valued at $950m in last year’s fundraise.
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Personal Capital was found by former Intuit CEO Bill Harris in 2009. It specialises in human financial advisors alongside automated investment management.
The deal is expected to provide the company with a pipeline of clients from the retirement plans serviced by Empower.
Personal Capital will also utilise Empower’s size and resources to expand its presence among individual investors looking for a blend of digital and human advice.
Following the transaction, CEO Jay Shah will serve as president and report to Empower CEO Edmund Murphy III.
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By GlobalDataDenver-based Empower is a subsidiary of Canadian insurance giant Great-West Lifeco. The company was formed in 2014 as the combination of record-keeping services from Great-West Financial, JPMorgan Chase and Putnam Investments.
Empower currently holds $656 bn in assets and is said to be the second-largest administrator of retirement investment plans in the US after Fidelity.
The company intends to leverage Personal Capital’s technology and wealth management capabilities as a benefit plan that sponsors and advisors can offer to retirement plan participants.
The transaction is expected to be closed in the second half of this year.
