The Investment Management Division of Goldman Sachs has agreed to acquire Honest Dollar, a web and mobile-based retirement savings platform, as part of an effort to serve the approximately 45 million Americans who do not have access to employer-sponsored retirement plans.
Austin, Texas-based Honest Dollar enables employees of small- and medium-sized businesses, self-employed individuals and independent contractors to quickly begin saving and investing for retirement by establishing individual retirement account (IRA)-based savings programs.
“Honest Dollar has created a simple solution to a complex retirement savings problem,” said Timothy J. O’Neill and Eric S. Lane, co-heads of IMD at Goldman Sachs. “Together, we have the potential to help millions of people achieve their investing goals.”
“We set out with a singular focus: to revolutionize the retirement industry and reach individuals who historically have been underserved,” said William Hurley (also known as whurley), CEO of Honest Dollar. “We look forward to being part of Goldman Sachs as we drive innovation across this space together.”
Honest Dollar will remain based in Austin upon completion of the transaction, which is subject to certain conditions and expected to close in the second quarter of 2016. Terms were not disclosed.