T. Rowe Price, the global investment management firm and retirement plan service provider, has struck a deal to purchase Retiree Inc., a fintech firm focused on retirement income planning software.
The financial terms of the deal were not disclosed, but according to a statement published by T. Rowe Price on Thursday, the transaction is expected to close during the second quarter of 2023, subject to satisfaction of "certain closing conditions."
In the statement, Dee Sawyer, head of retirement plan services and U.S. intermediaries at T. Rowe Price, says the integration of Retiree Inc.'s planning technology will help millions of Americans more confidently prepare, save for and live in retirement.
News of the acquisition comes after a self-professed "extremely difficult" 2022 for T. Rowe Price, which saw its assets under management slide nearly 25% during the year, falling to about $1.3 trillion in AUM from nearly $1.7 trillion. The firm also laid off 2% of its workforce as it sought to cut costs.
According to Sawyer, the acquired income planning software will be an important part of the firm's strategy to build personalized retirement income solutions and services for clients.
