Voya Financial (NYSE:VOYA), Inc., a prominent life insurance company, has agreed to acquire the full-service retirement recordkeeping business of OneAmerica Financial Partners, Inc., as disclosed in an 8-K filing with the SEC. The transaction includes the acquisition of equity interests in two OneAmerica subsidiaries and certain other assets related to the business.
The deal, announced Monday, involves Voya Retirement Insurance and Annuity Company, a subsidiary of Voya Financial, reinsuring group annuity contracts issued by American United Life Insurance Company, an affiliate of the seller. These contracts will be administered by Voya Retirement Insurance and Annuity Company on behalf of American United Life Insurance Company.
Voya will pay an upfront consideration of $50 million upon the closing of the transaction, with additional contingent consideration of up to $160 million based on the business's retained revenues a year after the closure and the performance of certain transition services.
The acquisition is set to be completed on January 1, 2025, pending customary closing conditions and regulatory approvals.
This strategic move is expected to expand Voya Financial's footprint in the retirement planning sector, adding to its already robust suite of financial services. The company's shares are traded on the New York Stock Exchange under the ticker VOYA.
The information contained in this article is based on a press release statement.
InvestingPro Insights
In light of Voya Financial's recent strategic acquisition, a glance at the company's performance metrics and management actions can provide investors with additional context. According to InvestingPro data, Voya boasts a market capitalization of $7.41 billion and a P/E ratio that stands at a competitive 9.68, suggesting a potentially undervalued stock when paired with its near-term earnings growth. The company has also demonstrated a commitment to shareholder returns, as evidenced by a 6-year streak of dividend raises and a noteworthy dividend yield of 2.39% as of the latest data.
InvestingPro Tips highlight that Voya's management has been actively repurchasing shares, which is often a sign of confidence in the company's future prospects. Additionally, the company has maintained dividend payments for 12 consecutive years, reinforcing its reliability for income-focused investors. For those interested in exploring further, InvestingPro offers additional tips that could provide deeper insights into Voya's financial health and future performance.
With the company trading near its 52-week high and analysts predicting profitability this year, the acquisition could be a catalyst for further growth. Voya's liquid assets also exceed its short-term obligations, indicating a solid financial position to support its expansion efforts in the retirement planning sector.
For those seeking to make an informed investment decision, these metrics and additional tips available on InvestingPro may prove invaluable.
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