Today, Principal Financial Group® announced a definitive
agreement with Ascensus to acquire its employee stock ownership
plan (ESOP) business. At closing, Principal® will add approximately
800 plans and more than 165,000 participants to its workplace
savings and retirement solutions business that ranks as the No. 1
ESOP service provider in the U.S.1
“Growth is an integral part of our retirement strategy at
Principal, and we’re excited to add scale and deepen our expertise
with the addition of experienced talent and solutions from
Ascensus,” said Teresa Hassara, senior vice president of workplace
savings and retirement solutions at Principal. “This acquisition
strengthens the systems and capabilities that have made Principal a
leader in retirement.”
Through this acquisition, Principal will gain full ownership of
the ESOP recordkeeping business from Ascensus, along with its ESOP
Economics consulting group and Telescope™ software. All products,
clients, and employees will transition to Principal at the time of
close, which is anticipated around the end of the second quarter of
2024. As Ascensus ESOP clients and participants are transitioned,
they will be exposed to enhancements on the Principal recordkeeping
platform such as digital access, support, and account management
tools as well as audit process improvements to reduce time.
“After getting the opportunity to review Ascensus’ ESOP business
more intimately, we found it to be very complementary to the
expertise Principal has as a total retirement solutions provider,”
said Andrew Matos, head of stock plan services for Retirement and
Income Solutions at Principal. “The acquisition positions us to
offer greater value, enhanced services, and stronger products to
our ESOP clients, and the integration of strong talent from
Ascensus will be essential to support the growth of our ESOP
business.”
Commenting on the agreement, Ascensus president Nick Good said,
“We have great respect for Principal, their expertise, and their
commitment to serving their clients with excellence. We’re
confident that the valued client relationships and associates
transitioning through this transaction will benefit greatly from
the leadership, capabilities, and continued investment Principal
has in the ESOP marketplace.”
Interest in ESOPs has grown in recent years as owners look to
transition their businesses or become more competitive with talent
recruitment and retention. In total, there are approximately 6,500
ESOPs in the U.S. after the number of newly created ESOPs increased
39% from 2020 to 20212. As of December 31, 2023, Principal and
Ascensus were collectively serving more than 2,000 employee stock
ownership plans and approximately 765,000 participants.
Perella Weinberg Partners served as financial advisor to
Principal, with Skadden, Arps, Slate, Meagher & Flom LLP acting
as legal counsel. Terms of the transaction are not being
disclosed.
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial
company with nearly 20,000 employees3 passionate about improving
the wealth and well-being of people and businesses. In business for
more than 140 years, we’re helping approximately 62 million
customers4 plan, protect, invest, and retire, while working to
support the communities where we do business, and build a diverse,
inclusive workforce. Principal® is proud to be recognized as
one of the 2024 World’s Most Ethical Companies® by Ethisphere5, a
member of the Bloomberg Gender Equality Index, and a “Best Place to
Work in Money Management6.” Learn more about Principal and our
commitment to building a better future at principal.com.
About Ascensus
Ascensus is a market-leading enabler of tax-advantaged
savings—providing technology, services, and expertise that help
millions of people save for a better future.
The company is a premier savings program service provider,
third-party administrator, and government savings facilitator. Its
platforms, industry knowledge, and data-based insights enhance the
growth and success of its partners, their clients, and savers
through co-branded, private-labeled, and governmental
partnerships.
Ascensus offers comprehensive qualified and nonqualified
retirement plan solutions, third-party retirement plan
administration, 529 education and ABLE savings program
administration, corporate- and bank-owned life insurance solutions,
and fiduciary and total rewards services.
The company's brands include Ascensus; Newport, an Ascensus
company; and FuturePlan by Ascensus. Ascensus has more than $808
billion in assets under administration and employs more than 5,500
associates as of March 31, 2024.
For more information, visit ascensus.com and
newportgroup.com.
Insurance products issued by Principal National Life Insurance
Co (except in NY) and Principal Life Insurance Company®. Plan
administrative services offered by Principal Life. Principal Funds,
Inc. is distributed by Principal Funds Distributor, Inc. Securities
offered through Principal Securities, Inc., member SIPC and/or
independent broker/-dealers. Principal Global Investors leads
global asset management. Referenced companies are members of the
Principal Financial Group®, Des Moines, Iowa 50392.
© 2024 Principal Financial Services, Inc. Principal®, Principal
Financial Group®, and Principal and the logomark design are
registered trademarks of Principal Financial Services, Inc., a
Principal Financial Group company, in the United States and are
trademarks and services marks of Principal Financial Services,
Inc., in various countries around the world.
1 Based upon number of plans, 2023 PlanSponsor Recordkeeping
Survey, July 2023
2 National Center for Employee Ownership, Employee Ownership by
the Numbers
3 As of March 31, 2024
4 As of March 31, 2024
5 Ethisphere, 2024
6 Pensions & Investments, 2023
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version on businesswire.com: https://www.businesswire.com/news/home/20240516186376/en/
Phillip Nicolino, 515-362-0239,
nicolino.phillip@principal.com
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