Ascensus entered into an agreement to acquire Pension Strategies, a Phoenix-based third-party administration firm, Ascensus announced in a news release Tuesday.
The terms of the deal, which is expected to close in the first week of June, were not disclosed.
The acquisition will give Ascensus a foothold in the rapidly growing Arizona market, said Jerry Bramlett, head of FuturePlan by Ascensus, the firm's TPA business, in a telephone interview.
"Pension Strategies falls right in our sweet spot in terms of companies that make good sense for FuturePlan to acquire," Mr. Bramlett said. "They're kind of the right size and in a market that we currently don't have a presence in."
Pension Strategies serves more than 2,000 plans, which Mr. Bramlett said fits the profile of firms that FuturePlan looks to buy.
The acquisition is the first purchase of a TPA firm in Arizona since Ascensus opened its Tucson office in 2017. Ascensus has purchased about two dozen TPA firms throughout the country since 2017, according to Mr. Bramlett.
Ascensus could potentially acquire more TPA firms in Arizona going forward, Mr. Bramlett added. "We will look at the market opportunistically," he said. "It's not unusual for us to add in the same geographic area to build out that area."
Pension Strategies serves a combination of defined contribution and defined benefit plans for small and midsized businesses. It will become part of FuturePlan once the deal closes.
As of March 31, Ascensus had more than $237 billion in assets under administration, according to the firm. It declined to disclose how much Pension Strategies had in assets under administration.