Principal Financial Group, the US retirement plan administrator, agreed to acquire Institutional Retirement & Trust business from Wells Fargo & Company, a diversified multinational financial services company, for $1.2bn. The agreement also includes an earnout of up to $150m tied to better than expected revenue retention, due two years post-closing. At closing, Principal will assume ownership of Wells Fargo’s defined contribution, defined benefit, executive deferred compensation, employee stock ownership plans, institutional trust and custody, and institutional asset advisory businesses and serve a combined 7.5m US retirement customers. “Retirement is at the heart of our business and core to our future,” said Dan Houston, chairman, president and CEO of Principal. “This will be a powerful combination for customers, employees, and shareholders as we solidify our place as a top-three leader in the U.S. retirement market. The acquisition will bring expanded capabilities, reach and scale; fueling our ability to compete, invest and grow to help more people to achieve their retirement outcomes.”