Indianapolis-based OneAmerica Financial Inc. has reached an agreement to divest its full-service retirement plan division to Voya Financial Inc., headquartered in New York City. The transaction, announced on Wednesday, is valued at up to $210 million and is scheduled to be finalized on January 1.
Under the terms of the deal, Voya will make an initial payment of $50 million, with the potential for an additional $160 million to be paid in the second quarter of 2026, contingent upon the achievement of certain performance metrics.
The retirement plan business being sold by OneAmerica, which is the largest private company in Indianapolis, manages approximately $47 billion in assets under administration. This includes a variety of retirement plans such as 401(k), 403(b), 457, non-qualified deferred compensation, and employee stock ownership plans.
While OneAmerica, which employs over 2,500 people in total, did not disclose the specific number of employees working in the retirement plan unit, industry sources suggest it is a substantial figure, likely in the hundreds. Voya has not provided details on how the acquisition might affect employment in Indianapolis.
Laura Maulucci, a spokesperson for Voya, stated that “a vast majority” of the employees in OneAmerica’s full-service retirement plan division will transition to Voya upon the deal’s closure. These employees will be integrated into Voya’s hybrid work model, which offers flexibility while maintaining a strong company culture and inter-colleague connectivity.
Regarding potential job cuts, Maulucci did not provide specifics but indicated that Voya would adjust its organizational structure as needed in the future to efficiently manage the business, develop talent, and advance its workplace strategy.
Voya plans to share more information about the acquisition during its upcoming third-quarter earnings call, for which a date has not yet been set.
Scott Davison, Chairman and CEO of OneAmerica, expressed optimism about the deal, stating, “We see this as a great opportunity for our customers and the OneAmerica Financial associates that will continue to grow with Voya, while we will focus on our remaining core product lines where we see tremendous growth potential.” OneAmerica’s other product lines include life insurance, annuities, asset-based long-term care products, and employee benefits.
OneAmerica currently holds the top position on the Indianapolis Business Journal’s list of largest Indianapolis private companies ranked by revenue, with 2023 revenue of $3.8 billion. It is also the second-largest private company in Indiana, following Fort Wayne-based Do it Best Corp.
Following the acquisition, Voya’s assets under administration will increase to $580 billion. The company employs approximately 9,000 people across the United States and in India. Voya’s history includes operating as a wholly owned subsidiary of Netherlands-based ING Groep N.V. until May 2013, when it became a publicly traded entity.
This strategic move allows OneAmerica to streamline its focus on its core business areas while providing Voya with an opportunity to expand its retirement services portfolio. The transaction represents a significant shift in the retirement plan services landscape, with potential implications for employees, customers, and the broader financial services industry in Indianapolis and beyond.