Community Bank System agreed to acquire Northeast Retirement Services, a provider of trust, retirement plan and accounting services, in a cash and stock deal worth approximately $140 million.
Community Bank will merge NRS into its subsidiary, Benefit Plans Administrative Services, according to a Community Bank news release Monday. The transaction is expected to close during the first quarter of 2017, pending regulatory and shareholder approvals. Boards of directors of both companies unanimously approved the deal, the release said.
BPAS provides employee benefit-related services, including defined contribution, actuarial, pension and institutional trust services.
BPAS has trust assets of $19 billion under administration, annual revenue of $47 million, 265 employees and 3,600 retirement plan clients, according to information provided by Susie Playman, the BPAS chief marketing officer. NRS has $32 billion in trust assets under administration, $33 million in annual revenue, 200 retirement plan clients and 70 employees.
Ms. Playman said in an interview that the plan is for all NRS employees to be retained, including CEO Thomas Forese. NRS will be an operating subsidiary under the BPAS umbrella. Mr. Forese will remain as CEO of NRS. “It will be business as usual,” she said.