Des Moines, Iowa, May 16, 2024–(BUSINESS WIRE)–Today, Principal Financial Group® Announced a definitive agreement to acquire Ascensus and its employee stock ownership plan (ESOP) business.At the closing of the meeting, the principal® adds approximately 800 plans and more than 165,000 participants to its workplace savings and retirement solutions business, ranked as the No. 1 ESOP service provider in the United States.1
Teresa Hasala, senior vice president of Workplace Savings and Retirement Solutions, said, “Growth is essential to Principal's retirement strategy, and we are excited to expand our scale and deepen our expertise with the addition of our experienced talent and Ascensus solutions. I'm excited about it.'' At the principal. “This acquisition strengthens the systems and capabilities that have made principals leaders in retirement.”
With this acquisition, Principal will gain full ownership of the ESOP record management business from Ascensus, along with the ESOP Economic Consulting Group and Telescope™ software. All products, clients, and employees will transition to Principal upon closing of the transaction, which is expected toward the end of the second quarter of 2024. Ascensus ESOP clients and participants will be migrated and will have access to enhancements to the Principal records management platform. This includes digital access, support and account management tools, as well as time-saving audit process improvements.
“After having the opportunity to take a closer look at Ascensus' ESOP business, we found it to be a great complement to Principal's expertise as a comprehensive retirement solutions provider,” said Principal Retirement and Income Solutions. said Andrew Matos, Director of Stock Plan Services. . “This acquisition will enable us to offer our ESOP customers greater value, enhanced services and a stronger offering, and the integration of Ascensus' strong talent will support the growth of our ESOP business. It will be essential.”
Commenting on the deal, Ascensus President Nick Good said, “We have great respect for the principals, their expertise, and their commitment to providing exceptional service to our customers. We are confident that this will significantly benefit our customer relationships and our employees.” Principal's leadership, ability and continued investment in the ESOP market. ”
Interest in ESOPs has increased in recent years as business owners transition their businesses and seek a competitive advantage in recruiting and retaining talent. The number of newly created ESOPs increased by 39% from 2020 to 2021, so there are approximately 6,500 total ESOPs in the United States.2. As of December 31, 2023, Principal and Ascensus collectively served more than 2,000 employee stock ownership plans and approximately 765,000 participants.
Perella Weinberg Partners served as financial advisor to the principals, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor. Terms of the transaction were not disclosed.
About Principal Financial Group®
Major financial groups® (NASDAQ: PFG) is a global financial company with approximately 20,000 employees.3 We are passionate about improving the wealth and well-being of people and businesses. We've been in business for more than 140 years and have served approximately 62 million customers.Four We are committed to supporting the communities in which we operate and building a diverse and inclusive workforce while planning, protecting, investing and planning for retirement.major® is proud to be recognized as one of the World's Most Ethical Companies in 2024.® by EthisphereFivea member of the Bloomberg Gender Equality Index and named a “Best Place to Work in Money Management.”6To learn more about Principal and our efforts to build a better future, visit principal.com.
About Ascensus
Ascensus is a market leader in tax-advantaged savings, providing technology, services and expertise that help millions of people save for a better future.
The Company is a leading savings program service provider, third-party administrator, and government savings facilitator. Its platform, industry knowledge and database insights power the growth and success of its partners, their customers and savers through co-brand, private label and government partnerships.
Ascensus provides comprehensive qualified and non-qualified retirement plan solutions, third-party retirement plan management, 529 education and ABLE savings program management, corporate and bank-owned life insurance solutions, and fiduciary and total compensation services .
The company's brands include Ascensus. Newport, Ascensus Company. and Ascensus' FuturePlan. Ascensus manages his assets of over $808 billion, and as of March 31, 2024, he employed over 5,500 people.
For more information, visit ascensus.com and newportgroup.com.
Insurance products issued by Principal National Life Insurance Co (excluding New York State) and Principal Life Insurance Company®. Plan the government services provided by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Principal Global Investors is a leader in global asset management.Reference company is a member of Principal Financial Group®Des Moines, Iowa 50392.
© 2024 Principal Financial Services, Inc. Principal®major financial groups®Principal and the logo design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and service marks of Principal Financial Services, Inc. worldwide.
1 2023 Plan Sponsor Record Management Survey, based on number of plans, July 2023
2 National Center for Employee Ownership; Employee ownership in numbers
3 As of March 31, 2024
Four As of March 31, 2024
Five Ethisphere, 2024
6 Pensions and Investments, 2023
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contact address
Philip Nicolino, 515-362-0239, nicolino.phillip@principal.com