Wachovia Corp. (NYSE: WB) announced today that it has entered into an agreement to acquire the defined contribution recordkeeping business of Minneapolis-based Ameriprise Financial, Inc.
The acquisition will add significant scale to Wachovia Retirement Services and expand its national reach. The transaction is expected to close late in the second quarter of 2006.
Ameriprise provides recordkeeping services to 225 retirement plans with nearly 700,000 participants and approximately $28 billion in assets, bringing Wachovia Retirement Services' business to more than 2 million participants and pensioners and over $100 billion in assets.
"This transaction underscores Wachovia's commitment to the retirement business," said Bob Reid, president of Wachovia's Retirement and Investment Products Group. "Retirement is a key focus for our company, and we look forward to continuing to provide great service and support to Ameriprise's defined contribution recordkeeping clients."
Ameriprise's defined contribution recordkeeping business will become part of Wachovia Retirement Services, which will continue to be managed by Joe Ready, senior vice president. Terms of the transaction were not disclosed.
"We are excited about the addition of Ameriprise's defined contribution plans as we continue to expand our retirement plan business," Ready said. "The combined organization will be a major force in the retirement plan business. This is a great fit for both organizations."
Ready added that Wachovia is committed to providing continuity to Ameriprise's defined contribution clients. "Ameriprise already leverages Wachovia's recordkeeping platform, and we share a strong commitment to client service," Ready said. "We are committed to providing a smooth transition and enhanced services for clients."
Wachovia Retirement Services has a proven track record of successful client transitions. Over the past three years, Wachovia Retirement Services has integrated Bank of New York's defined contribution daily recordkeeping business and PFPC's retirement services business.
Wachovia's Corporate and Investment Bank, Wachovia Securities, served as Wachovia Corporation's exclusive financial advisor on the transaction.