Verisight Inc., Walnut Creek, Calif., will acquire Newport Group Inc., Orlando, Fla., in a combination of companies that provide defined contribution record keeping, investment consulting, executive benefits and defined contribution consulting.
The acquisition, announced Wednesday, is expected to close by year-end, subject to regulatory approval, according to a news release from both companies. The acquisition price was not disclosed.
According to the news release, the holding company of Verisight will be renamed Newport Group Holdings Inc. and will acquire The Newport Group and Newport Group Securities.
After the acquisition, Greg Tschider, CEO of Verisight, will be chief executive of the qualified retirement plan services business, and Newport CEO Peter Cahall, will be chief executive of the executive benefit plan and investment consulting business, the new release said.
Dennis Sain, currently Newport’s senior vice president for retirement services, will continue to lead Newport’s qualified retirement group and report to Mr. Tschider.
In an e-mail response to questions, Mr. Cahall said James Campisi, currently Newport’s president, is retiring. “There are no changes to the other executives’ roles as a result of the transaction.”
In an e-mail response to questions, Mr. Tschider said Verisight has more than 450 employees and Newport has more than 550 employees. He declined to comment on how the acquisition would affect total employment.
The two companies “provide services to $100 billion of corporate client assets encompassing over 900,000 plan participant accounts,” said the news release, adding that the Verisight and Newport brands will remain separate.