Wachovia Corp. said it has agreed to acquire the retirement-services record-keeping and third-party servicing business of PFPC, a member of The PNC Financial Services Group.

PFPC is an administrative services provider that offers retirement outsourcing business and specializes in proprietary record-keeping technology, daily and periodic valuation, Internet access, and participant services.

The deal is expected to close by the end of the second quarter. Financial terms were not disclosed. Upon completion of the deal, the combined group will include Wachovia Retirement Services and PFPC Retirement Services and service more than 4,100 retirement plans with 1.3 million participants and pensioners. It will encompass $50 billion in assets under administration.

"We are committed to being a major provider in the retirement market, and this transaction represents the execution of one phase of our in-depth retirement strategy and will greatly enhance our operational effectiveness," said Darryl J. Fluhme, president of Wachovia’s corporate and institutional trust. "We will be able to leverage PFPC's core system competencies with our straight-through surround technology," he said.

Wachovia intends to market, service and support the third-party retirement outsource record-keeping business through a separate unit named WySTAR Global Retirement Solutions.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.