Ascensus and Empower Retirement announced Wednesday the purchase of Truist Financial Corp.’s institutional 401(k) record-keeping businesses, while OneDigital Investment Advisors announced its purchase of Truist’s institutional 401(k) investment advisory services business.
Truist, one of the nation’s largest commercial banks, was launched in 2019 after the merger of BB&T and SunTrust banks.
The Truist business acquired by Ascensus covers more than 1,200 plans with about 125,000 participants and $5 billion in assets. Ascensus will serve as the record keeper for the heritage BB&T plans as well as the plans for which it currently serves as outsourced record keeper.
Empower, which currently provides record-keeping services for Truist through its private-label retirement plan unit, Empower Institutional, will acquire the heritage SunTrust 401(k) record-keeping business, which includes about 300 retirement plans consisting of more than 73,000 plan participants and $5 billion in plan assets.
The terms of the transactions were not disclosed and are expected to close during the first quarter.
“We are excited about the opportunity to provide a smooth transition for these retirement savers and an enhanced customer experience that benefits both retirement plan participants and their employers,” said Edmund F. Murphy III, president and CEO at Empower, in a news release.
OneDigital Investment Advisors, the registered investment adviser and wholly owned subsidiary of OneDigital, acquired about 1,200 plans, representing $10 billion in plan assets in a deal that closed Dec. 31. Terms were not disclosed.
“The institutional 401(k) industry has experienced significant consolidation, and Ascensus, Empower and OneDigital are well-positioned to provide scale and expertise for our plan sponsor clients and their plan participants,” said Joe Thompson, head of wealth for Truist, in a separate news release.