OneAmerica to sell retirement plan business in deal worth up to $210M
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Indianapolis-based OneAmerica Financial Inc.—the city’s largest private company—has agreed to sell its full-service retirement plan business to New York City-based Voya Financial Inc., the companies announced Wednesday.
Under the terms of the deal, which is expected to close on Jan. 1, Voya will pay $50 million up front, plus up to an additional $160 million in the second quarter of 2026 contingent on the performance of certain metrics.
OneAmerica’s retirement plan business has about $47 billion in assets under administration through a variety of retirement plans, including 401(k), 403(b) and 457 plans, non-qualified deferred compensation plans and employee stock ownership plans.
OneAmerica, which has more than 2,500 employees overall, declined to say how many of those employees work in the retirement-plan unit. Voya declined to say whether the acquisition would have an impact on employment in Indianapolis.
Industry sources said the number of employees in the unit is significant, numbering in the hundreds.
Voya spokesperson Laura Maulucci said that “a vast majority” of OneAmerica’s full-service retirement plan employees will become Voya employees when the transaction closes.
“The full-service retirement plan business employees joining Voya will be part of Voya’s hybrid-work model, which allows for a flexible working environment while maintaining a strong culture and connectivity between colleagues,” Maulucci said via email.
But she did not provide specifics to an IBJ question about potential job cuts.
“Like Voya has done with past transactions, Voya will refine its organizational structure as needed in the future to efficiently run the business, develop the company’s talented people and advance Voya’s workplace strategy.”
Voya said it plans to provide more details about the transaction during its third-quarter earnings call. The company has not yet set a date for that call, Maulucci said.
“We see this as a great opportunity for our customers and the OneAmerica Financial associates that will continue to grow with Voya, while we will focus on our remaining core product lines where we see tremendous growth potential,” OneAmerica Chairman and CEO Scott Davison said in a written statement.
OneAmerica’s other product lines include life insurance, annuities, asset-based long-term care products and employee benefits.
OneAmerica tops IBJ’s list of largest Indianapolis private companies ranked by revenue, with 2023 revenue of $3.8 billion. The company is also the second-largest private company in Indiana, behind Fort Wayne-based Do it Best Corp., IBJ research shows.
Post acquisition, Voya will have $580 billion in assets under administration.
Voya has about 9,000 employees located throughout the U.S. and in India. The company operated as a wholly owned subsidiary of Netherlands-based ING Groep N.V. until May 2013 when Voya became a publicly traded company.